Pathfinder Project
The Pathfinder project embraces the Toolgerie, Yalata and Black Hills tenements on the western Gawler Craton. A joint venture agreement has been signed with PlatSearch NL (“PlatSearch”) and Bohuon Resources Pty Ltd (“Bohuon”) whereby Newport can earn a 60% interest by completing expenditure of $1.5 million within four years. When Newport has earned a 60% interest, PlatSearch and Bohuon can elect to participate with their 32% and 8% interest respectively, or reduce to a 16% and 4% interest respectively, free-carried to completion of a favourable bankable feasibility study (“BFS”) and decision to mine. During the first 12 months of the agreement, Newport must complete a Stage One work programme costing $250,000. The agreement provides that Newport will issue 500,000 shares to PlatSearch at $0.06 per share ($30,000) and will grant PlatSearch 1,000,000 options and Bohuon 200,000 options with an exercise price of 35 cents, which are exercisable at any time prior to the expiry date of 31 December 2011.
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