NEW CANTECH VENTURES
INC.
201 - 14881 Marine
Drive
White Rock, BC V4B
1C2
Tel: 604-541-7288
Email: kenya1@telus.net
Website: http://www.newcantech.com
2007-06-11 08:21 ET - News Release
Mr. James Jacuta reports
NEW CANTECH VENTURES INC. CONSENTS TO PALM CLEAN ENERGY, INC. ASSIGNING
TO DAEWON CHEMICAL 60% OF ITS OPTION TO ACQUIRE A 60% INTEREST IN THE LUCKY SHIP
MOLYBDENUM PROJECT
New Cantech Ventures Inc. has entered into a formal assignment agreement
with Palm Clean Energy Inc. and Daewon Chemical Co. Ltd., under which Cantech
has consented to Palm Clean assigning 60 per cent of its option to acquire a
60-per-cent interest in the Lucky Ship molybdenum project to one of its
shareholders, Daewon Chemical Co. Ltd., a public company listed on the Korea
Stock Exchange which trades under the trading symbol 024890. Daewon Chemical
owns 19.95 per cent of Palm Clean. The assignment agreement was signed following
meetings in Vancouver, B.C., last week, by a delegation of representatives of
Palm Clean and Daewon Chemical with Cantech, and a visit to Smithers, B.C., and
to the site of the Lucky Ship molybdenum project by all of the representatives
of Daewon Chemical and Palm Clean.
As part of the formal assignment agreement, Palm Clean has confirmed that
it will pay Cantech a further $1.3-million by June 15, 2007, and that Palm Clean
and Daewon Chemical jointly and severally commit to provide another $2-million
by Nov. 13, 2007, pursuant to the terms of the written option agreement between
Cantech and Palm Clean, as assigned, in part, to Daewon Chemical.
Under the terms of the option agreement prior to such assignment, Palm
Clean had a right to acquire a 60-per-cent interest in the Lucky Ship molybdenum
project by doing all of the following:
- Providing $4.3-million to be used as exploration
expense on the Lucky Ship molybdenum project during the first year (from Nov.
13, 2006, to Nov. 12, 2007), of the option (including a $1-million private
placement which was completed earlier);
- Incurring sufficient exploration expense in
years two and three of the option to produce a bankable feasibility study on
the Lucky Ship molybdenum project;
- Providing debt financing to finance both the
costs of Cantech and the costs of Palm Clean under a formal joint venture to
put the Lucky Ship molybdenum project into production; and
- then put the Lucky Ship molybdenum project into
continuous production.
Also under the option agreement, Palm Clean was granted the right to earn
various interim options.
As a result of Palm Clean assigning to its shareholder, Daewon Chemical,
60 per cent of its option to acquire a 60-per-cent interest in the Lucky Ship
molybdenum project, upon the exercise of that option, the parties will own the
Lucky Ship molybdenum project in the following percentages:
- New Cantech Ventures, 40 per cent;
- Palm Clean Energy, 24 per cent;
and
- Daewon Chemical, 36 per
cent.
The assignment agreement is subject to the approval of the TSX Venture
Exchange.
Cantech continues to move forward on the development of its Lucky Ship
molybdenum project.
About New Cantech
New Cantech is a TSX Venture company focusing on the development of its
Lucky Ship Molybdenum Project in northern British Columbia. In addition to the
Lucky Ship Project, New Cantech is pursuing other related mineral projects that
may be beneficial to shareholders.
For more information please contact
Dalton B. DuPasquier, President & CEO of New Cantech Ventures Inc., at (604)
541-7288 or visit Cantech's website at http://www.newcantech.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
"James Jacuta", Chairman
NEW CANTECH
VENTURES INC.
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content of the information contained herein.
For investor enquiries contact:
John
R. Chalcraft, ProActive Communications
#201
- 2383 King George Hwy., White Rock, BC, V4A 5A4
Local: (604)
541-1995; Toll free: 1 (800) 540-1995
email:
JOHNCHALCRAFT@SHAW.CA