Innocent Inc., www.innocentinc.com – an emerging mining company which is squarely focused on leveraging its core competencies to push under producing near- and in-production properties to full capacity, reported entry into a material definitive agreement today with Steele Resources, Inc. (SELR.OB), whereby Innocent will acquire 50% of the Mineral Hill Gold Exploration Project.
This agreement essentially creates a 50/50 joint venture for exploration and operation of the some 1,800 acres, consisting of 17 patented and 67 unpatented lode mining claims, ideally located right near Pony Hill, Montana in the rich Mineral Hill Mining District.
CEO of INCT, Wayne Doss, hailed this agreement as the start of a beautiful relationship between the two companies and was particularly delighted that the deal would grant INCT immediate and direct access to Steele’s extensive expertise in the Montana resource area sector, as localized knowledge is a “critical success factor” in this and all such mining operations.
The terms of the agreement and structure of the joint venture are as follows:
• Initial participating interests of 50% for each company
• Innocent to contribute as much as $5M over one year for operational costs, forfeiting 10% per $1M not provided
• Steele will act as operating partner, matching up to $5M within one year of Innocent’s outlay of the first $1M, similarly forfeiting 10% per $1M not provided
• Initial $300k payment has been made by Innocent as per terms of the Jan 27, 2011 LOI
• Second payment is slated for on or before Feb. 28 (based upon a third party commitment of which the funds have yet to be secured at the time of this release)
CEO of SELR, Scott Dockter, called it a major step for both companies and explained the synergies and parallels between the two companies when it comes to developing gold projects would lead to smashing success.
Dockter underscored the vast potential of the site itself and briefly delineated the planned, aggressive exploration program, which will begin by identifying mineralization immediately recoverable under Montana’s Small Miner Exclusion.
Dockter emphasized that the geological analysis of the site thus far has generated extremely high confidence that the property’s known mineralization is just the tip of the iceberg.
We see gold this week again above $1400, as silver sets all time records, breaking $34 on Monday and as we go further into 2011 it is shaping up to be a year dominated by raw inputs, with precious metals leading the way due to global currency destabilization.