There?s No ?I? in Teamwork!
It is amazing how much you can accomplish when it doesn't matter who gets the credit.
?Team? is a term that resounds loudly and frequently in Suite 314 ? 800 W. Pender St. ? headquarters of St. Elias Mines Ltd. The ?St. Elias Team? recognizes how unequivocally imperative it is to work as a team, empowering each other and empowering those around them.
Terry Nixon, Manager of Corporate Communications, says ?we have methodically and strategically established a syndicate of highly capable, like-minded business relations who share our vision for great, and ? just as importantly ? sustainable success. Proper management involves the ability to put round pegs into round holes. Our recent agreements with Hi Ho Silver and Kernow Resources are textbook examples of just that. In both cases, the agreements offer a win-win for all; creating and maintaining value for our shareholders. I once heard it said that teamwork divides the task and doubles the success. Individual commitment to a group effort ? that?s what is going to make this madly successful.?
St. Elias agreed to sell its interest in the Kettle River Moly Project in B.C. and its interest in the Jales/Gralheira Gold Property in Portugal, both on very favorable terms for the company. ?In both cases, the purchasers are highly competent companies who, we believe, have the ability, resources and vision to exploit these opportunities quickly and effectively, says Lori McClenahan, President and CEO.
Kettle River Molybdenum Property, B.C.
The Deal: Hi Ho Silver Resources Inc. (?Hi Ho?) earned an initial 51% interest in the Property from St. Elias by meeting the following terms:
1. paying $75,000;
2. issuing 500,000 common shares of Hi Ho to St. Elias; and
3. incurring exploration expenditures of $2,000,000 on the Property
St. Elias has agreed to sell the remaining 49% interest in the Property to Hi Ho in consideration of:
1. $750,000;
2. 3,500,000 common shares of Hi Ho;
3. St. Elias retains a 1.5% net smelter return royalty (?NSR?) from all proceeds received from commercial production; and
4. in the event that Hi Ho sells the Property (or an interest in the Property) in the future, St. Elias will receive a portion of the proceeds which Hi Ho realizes from the sale of the Property or an interest therein.
St. Elias agreed to grant Hi Ho an option to purchase 1,750,000 of these shares at $1.00 per share.
Benefits: The Property has tremendous potential to contain significant moly reserves, however, to prove up reserves and to bring the Property into production would take a substantial amount of money. St. Elias stands to benefit greatly from any development or sale of the Property while mitigating its risks and dilution. With this deal, St. Elias receives cash and shares resulting in a current equity interest of approximately 20% in Hi Ho. In addition, St. Elias will be granted a cash sum if Hi Ho sells the Property, pro rata to their equity in Hi Ho at the time of the transaction. In the event the Property goes into production, St. Elias will receive regular payments from the 1.5% NSR. The further the Property advances, the larger the benefit for St. Elias (with no cost or risk to St. Elias.)
Jales/Gralheira Gold Property, Portugal
The Deal: Previously St. Elias owned a 51% interest and Kernow Resources & Developments Ltd. (?Kernow?) owned a 49% interest in the Property. Recently, it was agreed that Kernow purchase St. Elias? 51% interest in the Property on the following terms:
1. Kernow forgive outstanding payments of approx. CDN$61,200;
2. Kernow pay $50,000 cash to St. Elias;
3. Kernow grant 1,000,000 common shares of Kernow stock to St. Elias;
4. upon receipt of a Full Mining License from the Portuguese Authorities, Kernow grant a further 2,000,000 shares and make a further $100,000 cash payment to St. Elias;
5. Kernow grant a 0.40% NSR on the Property to St. Elias.
Benefits: The Property has the potential to contain significant gold reserves; however, to comply with Portuguese government mining regulations and bring the Property into production will require a substantial amount of money in the near term. Upon fulfillment of the terms of the agreement, St. Elias will own a 14% interest in Kernow. St. Elias will retain a large stake in the project through its ownership of Kernow shares and the 0.4% NSR while mitigating risk and avoiding share dilution.
As stated by Michael Jordan, ?Talent wins games, but teamwork and intelligence wins championships.?
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