We will be having a presentation about our position on Limerick Estates at
out annual general meeting on Sat. July 3rd at Limerick Lodge. Please bring
your comments and questions to this meeting.
Limerick Mining News :
LIMERICK MINES LTD
>From initial prospectus filed in June 2004
on web site
www.sedar.com
CORPORATE
STRUCTURE
Name and
Incorporation
The Company was incorporated on June 30,
1999, under the Business Corporations Act (Ontario) (“OBCA”) as “ICA
Associates Inc.” By articles of amendment filed on October 25, 1999, the
name of the Company was changed
to “E-Mine Limited”. By articles of
amendment filed on October 17, 2003 the name of the Company was changed to
Limerick Mines Limited. The Company’s registered and head office is located
at Suite 501, 67 Yonge Street,
Toronto, Ontario M5E 1J8. The Company has no
subsidiaries and no employees.
BUSINESS
OF THE COMPANY
In 1999 John Steele, the current President
and Chief Executive Officer of the Company purchased all of the issued and
outstanding shares of the Company and the name of the Company was changed to
E-Mine Limited. E-Mine
Limited did not proceed with its intended
business plan to act as an incubator for mineral exploration and development
related technology and the Company was inactive for a number of years. At
the end of 2003, the Company identified a new business opportunity in the
mineral exploration and development sector and the name of the Company was
changed to Limerick Mines Limited.
The Company is engaged in the business of
acquiring, exploring and developing (if warranted) mineral resource
properties. The Company’s principal exploration properties (the “Limerick
Properties”) are located in Limerick Township, Ontario where the Company is
exploring for nickel, copper, cobalt, gold and platinum group metals. The
Company has entered into six option agreements with various individuals to
earn a 100% interest in the Limerick Properties. See “Limerick Properties”.
The Limerick Properties consist of approximately 880 hectares and three
staked claim blocks comprising 230 hectares. The Company has also entered
into letters of intent to earn a 100% interest in the Bonter Nickel-Copper
Prospect located approximately 30 kilometres from the Limerick Properties
and has staked two claims covering 400 hectares (the “Bear Shanty Lake
Prospect”) located approximately 10 kilometres from the Limerick Properties.
Within the next 12 to 18 months, the Company intends to complete the Phases
1 and 2 of the exploration program recommended by Micon International
Limited (“Micon”) respecting the Limerick Properties, which consists of a
surface exploration program, an exploration drilling program and a resource
estimation program, and which has an estimated total cost of $3,180,000. See
“Limerick Properties – Recommendations”. If the results of the initial
phases of exploration prove to be encouraging, the Company will undertake
additional exploration work and may require additional capital prior to
conducting such additional exploration work. The additional capital may come
from future financings or through option agreements with one or more third
parties. There can be no assurance that the Company will be able to raise such
additional capital if and when required. See “Use of Proceeds” and “Risk
Factors – Future Funding Requirements”.
The objective of the Company is to maximize
shareholder value through successful exploration initiatives in Southern
Ontario, throughout Canada and abroad.
Option
Agreements for the Limerick Properties
The Company holds its interest in the
Limerick Properties pursuant to six option agreements, as amended (the
“Option Agreements”) which were entered into by the Company and various
individuals (collectively, the “Optionors”) at the end of 2003 and the
beginning of 2004. The Option Agreements give Limerick the option to acquire
100% interest in the Limerick Properties. Pursuant to the Option Agreements
the Company was granted the sole, exclusive, irrevocable and immediate right
and option (the “Option”) to explore for and exploit the mineral resources
on the mining claims comprising the Limerick Properties and upon exercise of
the Option to have and enjoy all mining rights in respect of the Limerick
Properties and all ownership over the minerals over or under the Limerick
Properties subject to a net smelter return royalty of 1.75% in favour of the
Optionors.
In order for the Company to maintain its
Option under each of the Option Agreements, the Company must make biannual
advance payments of the net smelter return royalty to the Optionors until
the property underlying the Option Agreement has attained commercial
production. For the fiscal year ended March 31, 2004 the Company spent
$53,000 in respect of advance payments of the net smelter returns royalties.
The Company expects to spend $70,000 for the fiscal year ended March 31,
2005, $98,000 for the fiscal year ended March 31, 2006 and $112,000 for the
fiscal year ended March 31, 2007 and for each year thereafter until
commercial production of the property underlying the Option Agreements is
attained. Pursuant to each Option Agreement, the advance net smelter return
royalty payments will be credited against any net smelter return royalty
payments that are due to the Optionors upon the relevant portion of the
Limerick Properties attaining commercial production. If the Company
completes a Liquidity Event, the Company will issue Common Shares to the
Optionors of the Limerick Properties. The number of Common
Shares to be issued is dependent on whether or not the Company has completed
a Liquidity Event and the value of such Liquidity Event. In the event that
the gross proceeds of an equity financing are less than $1 million or there
is no equity financing completed in connection with the Liquidity Event, the
Optionors are entitled to receive an aggregate of 8,650,000 Common Shares
pursuant to the Option Agreements. If the Company completes an equity
financing in connection with a Liquidity Event for at least $1 million, the
aggregate amount of Common Shares to be issued to the Optionors under the
Option Agreements is $5,190,000 of Common Shares.
Other
Property Agreements
Bonter
Prospect - Letters of Intent
On April 28, 2004, the Company entered into
letters of intent with Buckshot Woods Limited and William McLaughlin with
respect to certain properties located in Marmora Township, Ontario. Pursuant
to the letters of intent, a definitive agreement shall be entered into by
the parties by May 28, 2004, however the parties to the letters of intent
have agreed to extend this deadline to August 1, 2004. Pursuant to the
definitive agreements, the Company shall be granted an option to earn a 100%
interest in the mineral rights of the Bonter Nickel-Copper Prospect in
consideration for payments totalling $145,000 during the first four years of
the Option and the payment of a nonrefundable advance net smelter return
royalty payment of $20,000 per year thereafter. The Company must also incur
work commitments during the first three years of the option in the aggregate
amount of $400,000.
Bear
Shanty Lake Prospect
Claim 3006495 with respect to lots 27, 28
and 29, Concession 15 and 16 and claim 3006496 with respect to lots 30 and
31, Conc. 15 and 16 in Limerick Township, Ontario were staked in the name of
the Company and were registered on Friday, May 7, 2004 as
transaction NO. R0490.01760. The total land position is 20 units or 400
hectares. To maintain the claims the Company is required to spend $8,000 in
the next two years and $8,000 each year thereafter on qualified expenses
exploring the Bear Shanty Lake Prospect.
LIMERICK
PROPERTIES
Micon was retained by the Company to prepare
a report (the “Technical Report”) on the Limerick Properties. The Technical
Report is dated April 30, 2004. The Technical Report is the source of the
technical disclosure contained in this Prospectus relating to the Limerick
Properties. Various portions of the Micon report are summarized below.
The full text of the Technical Report is
available for review at the Company’s office located at Suite 501, 67 Yonge
Street, Toronto, Ontario, M5E 1J8. Micon has provided its consent to the use
of its report and the summarized sections of its report in this Prospectus
in a letter dated <*>, 2004.
Property
Description and Location of the Limerick Properties
The Limerick Township nickel-copper
properties (the “Limerick Properties”) are situated in southern Ontario
about 80 kilometres north of Belleville and 25 kilometres south of Bancroft.
They lie about 1.5 kilometres west of Highway 62 and can be reached by an
old pioneer and mine road system or by an abandoned railway branch line to
Coe Hill which is now an ATV-snowmobile trail.
The Limerick Properties consist of 44 – 50
acre half lots in Limerick Township, Ontario comprising approximately 880
hectares, and three staked claim blocks comprising 230 hectares. Limerick’s
total land package consists of 1710 hectares.
Speculative Nature of Mineral Exploration
and Mining Resource exploration, including the exploration for nickel,
copper and cobalt ore, is highly speculative in nature, involves many risks
and frequently is not productive. Each of the properties in which the
Company holds an interest is without a known body of ore. The proposed
program of exploration on the Limerick Properties is an exploratory search
for nickel-copper-cobalt ore. Development of the property will proceed only
after obtaining satisfactory exploration results. There can be no assurance
that the Company’s exploration efforts will be successful, or that commercial quantities of ore will be
discovered. There is also no assurance that a mineral property will be
brought into commercial production even if commercial quantities of ore are
discovered. The discovery of mineral deposits is dependent on a number of
factors including the quality of the Company’s management, the technical
skill of the Company’s personnel and independent technical personnel, and
the quality of land available for exploration. Once mineralization is
discovered, it may take several years in the initial phases of drilling
until production is possible, during which time the economic feasibility of
production may change. The commercial viability of a mineral deposit once
discovered is dependent on a number of factors, some of which are the
particular attributes of the deposit, such as size, grade and proximity to
infrastructure, metal prices and government regulations. Substantial
expenditures will be required to establish proven and probable mineral
reserves through drilling, to determine the optimal
metallurgical process to extract the metals from the ore and, in the case of
new properties, to construct mining and processing facilities.
AND THIS ADDENDUM:
"We are in the
middle of a financing and I am limited in what I can say. Our initial
prospectus, which describes Limerick Mines Ltd. and the project, is filed
with the securities regulators. It can be found on
www.sedar.com
under company profiles and the letter L.
Mr. Thomasz Wlodarczyk of Gartner Lee Ltd. is handling our community
relations."
