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VMS ENTERS INTO A LETTER OF INTENT FOR THE
ACQUISITION OF REED LAKE CLAIMS WITH W. BRUCE DUNLOP LTD.
November
4,
2008
Vancouver, B.C., November 4,
2008. VMS Ventures Inc. (TSX-V: VMS) (the “Company”) is pleased to announce
that it has signed a Letter of Intent (“LOI”) outlining terms and conditions to
acquire a 100% interest in the Dunlop Reed Lake Claims from W. Bruce Dunlop Ltd.
(the “Vendor”).
The Dunlop Reed Lake claims are
currently subject to an Option Agreement between the Company and the Vendor
dated August 1, 2006 and amended November 1, 2007. The LOI has the following
terms and conditions.
The Company shall:
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(a) |
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pay to the Vendor the sum of $375,000 on
closing of the acquisition (the “Closing”); |
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(b) |
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issue to the Vendor 3,000,000 common shares
of the Company, on Closing, it being acknowledged that such shares
will be restricted from transfer for a period of four months in
accordance with applicable regulatory requirements; |
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(c) |
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agree to pay to the Vendor the further sum
of $225,000, payable as to $125,000 on the first anniversary of the
Closing and the remaining $100,000 on the second anniversary of the
Closing. It is acknowledged that the obligation of the Company to
make such payments is contingent upon the Company entering into an
agreement, on or before the first anniversary date of the Closing,
with a third party which provides for the commercial production of
the Reed Lake Claims. For the purpose of the LOI, that shall mean
the production of ores, concentrates, metals or other mineral
products for sale on a commercial basis (“Commercial Production”); |
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(d) |
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agree to pay to the Vendor a production
bonus of $600,000, payable to the Vendor in amounts equal to 20% of
any payments received by the Company from Commercial Production, If
and when such Commercial Production occurs, concurrent with the
receipt of such payments, until the full $600,000 has been paid. |
Completion of the acquisition
remains subject to execution of a definitive agreement between the parties and
the acceptance of the TSX Venture Exchange.
VMS Ventures CEO, Rick Mark,
states: “We would like to thank the Dunlop family for their efforts in this
negotiation. We appreciate their support and are pleased that they are now
significant shareholders in VMS. They have put their trust in us to build wealth
for them as shareholders through Reed Lake and the Discovery Zone deposit and
our entire VMS and Nickel property package in Manitoba”.
VMS Ventures Inc. is focused
primarily on acquiring, exploring and developing copper-zinc properties in the
Flin Flon-Snow Lake VMS Belt. The Company also holds the largest land package
considered prospective for nickel-copper mineralization at Lynn Lake, which is
to date Canada’s third largest nickel producing camp. The Company’s project
portfolio consists of the Snow Lake VMS project, the Lynn Lake Gabbros
nickel-copper project, the Nickel Belt project, the South Bay
nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex,
Specialty Metals property. All VMS Ventures Inc. properties are located in the
mining friendly province of Manitoba, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal B.Sc.
President & Director
For further information contact:
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Keith Patey,
Director of Communications
Telephone: (604) 986-2020
Toll Free: 1-866-816-0118 |
Dale Paruk
Coal Harbor Communications
Telephone: (604) 662-4505
Toll Free: 1-877-345-3399 |
The TSX Venture exchange does not accept responsibility for the
adequacy or
accuracy of this release.
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