MONTREAL, QUEBEC--(Marketwired - Feb 10, 2015) - J.A.G. MINES LTD (JAG) (TSX VENTURE:JML) and its subsidiary OLITRA Inc. (Olitra) announce that the second phase of the agreement (MOU) signed on November 12 by the private company 8020264 Canada Inc. (Bioverda Resources) (Bioverda) was completed. The second payment of $50,000 was made as agreed.
With this agreement, Bioverda would acquire 55% interest in the exploration permits held by Olitra for Temiscouata and Lac St-Jean in consideration of a cash payment of $3,500,000. The MOU also includes a 10% royalty payable to Olitra on net revenues from the sale of hydrocarbons for a period of 10 years beginning at the start of production. During this period, Bioverda may redeem this royalty by paying an amount of $5,000,000.
The transaction also involves the acquisition of 55% interest in the exploration permits of Pohénégamook, a property 100% owned by JAG, for the sum of $500,000. This transaction is subject to the same 10% royalty and the same possibility of redemption of this royalty for $5,000,000.
The closing date must take place no later than February 27, 2015. The agreement contains, alter alia, a commitment to begin an exploration program of the properties on May 31, 2015 at the latest for an amount of at least $1,500,000.
The direction of JAG and Olitra is very pleased with this transaction which will allow the resumption of important work on these properties of Bas St-Laurent that offer, according to the geologist Marc R. Laflèche, Ph.D. of the INRS (Institut National de la Recherche Scientifique), a strong potential of discovery of hydrocarbons.
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.
ABOUT BIOVERDA
Bioverda Resources 8020264 Canada Inc., a private company, acquires interest in companies involved in exploration and development of gas and oil properties in Quebec, Canada and around the world.
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.