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February 21, 2005
E-Energy to acquire Limerick and Stormy Mountain claims
Mr. Malcolm Fraser reports
LETTERS OF INTENT SIGNED
E-Energy Ventures Inc. has entered into a letter of intent
with Limerick Mines Ltd. of Toronto, a public Ontario corporation, to acquire
from Limerick all of its interest in patented copper-nickel mineral claims
located in Limerick township, Ont., where Limerick was exploring for nickel,
copper, cobalt, gold and platinum group metals. Limerick had entered into six
option agreements with various individuals to earn a 100-per-cent interest in
the Limerick properties. The Limerick properties consist of approximately 880
hectares and three staked claim blocks comprising 230 hectares. In addition,
Limerick also staked two claims covering 400 hectares, located approximately 10
kilometres from the Limerick properties, and had also staked four claims
covering 300 hectares located in Kaladar township, Ontario, approximately 40
kilometres from the Limerick properties. A geological review of the Limerick
township properties, previously conducted by the independent geological
consulting firm of Derry, Michner and Booth (DMB) in 1971, estimated 3.5 million
tons of mineralization grading 0.68 per cent nickel and 0.21 per cent copper
were present, based on 93 drill holes drilled by prior owners, Macassa Gold
Mines Ltd. (23 holes -- 4,157 metres) and Long Lac Minerals Ltd. (70 holes --
12,800 metres). These estimates do not comply with the definitions outlined in
sections 1.3 and 1.4 of National Instrument 43-101, as they were prepared prior
to the creation of the instrument. In April, 2004, Micon International Ltd.,
independent consultant geologists, undertook a review of the prior geological
work and concluded that the methodology used conformed to the industry standards
at the time and that the parameters used were applicable to the economic
conditions of the day and the estimate is relevant to the proposed work program
envisioned.
The consideration for the acquisition of the Limerick
properties will be two million common voting shares and a cash payment of
$50,000. The transaction will be subject to prior approval of the TSX Venture
Exchange.
The company has also entered into a letter of intent with
Impala Resource Services Ltd. and Elite Vantage Development Ltd. to acquire from
the vendors a 100-per-cent interest in the property rights pertaining to the 20
mining claims located in Yukon. The property is identified as the Stormy
Mountain molybdenum property.
In consideration, the company is required to pay the vendors a
total of $75,000 in cash, issue two million common shares of the company to the
vendors and a 2-per-cent net smelter return of which 1 per cent may be purchased
by the company for $1-million. The transaction will be subject to prior approval
of the TSX-V.
The Stormy Mountain molybdenum property is located 35 miles
south-southeast of Ross River, Yukon. The property is road accessible during the
summer months and is located at an elevation of 6,200 feet. Molybdenum and
tungsten were discovered on the property in 1958. Diamond drilling in 1980
confirmed the high-grade nature of the molybdenum mineralization. Work during
the period 1995 to 1997 traced the favourable host horizon containing the
original deposit for over 2,000 feet to the north and located two areas highly
anomalous in molybdenum-copper and tungsten. A new showing of molybdenite
mineralization was discovered which assayed 1.10 per cent molybdenum. A program
of prospecting, geological mapping, geochemistry and diamond drilling could
substantially expand the area of high-grade molybdenum mineralization.
The company has undertaken a non-brokered private placement
for eight million units to be issued at six cents per unit for a total of
$480,000 to be used for settlement of debts and general working capital. Each
unit comprises one common voting share and one share purchase warrant for an
additional voting common share, exercisable at a price of 12 cents per share for
one year from the date of issue of the unit.
Finder's fees shall be payable in accordance with TSX-V policy
guidelines in respect of each of the properties and the private placement.
We seek Safe Harbor.
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