Published : March 06, 2015
MONTREAL, QUEBEC--(Marketwired - March 6, 2015) - J.A.G. MINES LTD (JAG) (News - Market indicators) and its subsidiary Olitra Inc. (Olitra) announce that Bioverda is in default since February 28 in relation to the terms of the agreement (MOU) signed on November 12 2014. Indeed, the closing of the acquisition was supposed to take place no later than February 27.
With this agreement, Bioverda could have acquired 55% interest in the exploration licenses held by Olitra in Témiscouata (Bas-St-Laurent) and Lac St-Jean, in consideration of a cash payment of $ 3.5 million, and 55% interest in the exploration licenses of Pohénégamook (Bas-St-Laurent), 100% owned by JAG, for the sum of $ 500,000. The agreement also included a 10% royalty payable on net revenues from the sale of hydrocarbons for a period of 10 years beginning at the start of production.
The exploration for hydrocarbons in Quebec, particularly in the Bas-St-Laurent, is booming. JAG and Olitra know the potential of their properties and want to be identified as a major player in that sector.
ABOUT JAG
J.A.G. Mines Ltd is a public corporation incorporated in April 1976 under the Canada Business Corporations Act. JAG is engaged in the exploration and development of mining projects, all located in the province of Quebec, aiming at their eventual commercial exploration. JAG and its subsidiary Olitra are also active in the search for gas and oil in the province of Quebec since 2006. JAG holds 65.8% of Olitra's outstanding shares.
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