White Bear Resources terminates Russia projects, to focus on Brazil
VANCOUVER. Feb 12 (Interfax) - Canada's White Bear Resources Inc. is pulling out of its Russia-based projects and will focus on Brazil.
The company said in a statement that it had signed a termination agreement with Pavel Kozlov, under which it would immediately transfer its remaining 53% of the shares of Everest Capital JSC shares back to Kozlov, giving Kozlov 100% of Everest Capital JSC, which holds the exploration licenses for the Kundat and Tsentralniy properties in the Kemerovo region.
White Bear's transfer of the remaining shares of Everest Capital to Kozlov will relinquish White Bear's ownership of the Kundat and Tsentralniy licenses.
White Bear Resources will continue its focus on securing exploration assets in Brazil.
White Bear Resources bought the shares in Everest Capital from Kozlov in May 2011. According to the deal, the company was supposed to buy all shares in Everest Capital and, in the course of three years, pay a cash consideration of $300,000 and issue 10.5 million new WBR shares in Kozlov's favor, and invest $1 million in the Kundat field. The company was also due to transfer 3% of net operating profit to Everest Capital. WBR has not conducted exploration activity at Kundat but did guarantee a minimal commitment of $250,000 in 2011.
The cost of exploratory and primary drilling at the Kundat and Tsentralniy properties is estimated at $2.4 million.
Kundat contains an estimated 6 tonnes of P1 and 14 tonnes of P2 gold.
Kinross Gold Corporation earlier bought warrants for 18.1% of WBR shares for $225,000.
