Pacific Bay Signs Jade Mining Agreement, $500,000 Financing Arranged, Appointment of Director
Vancouver, British Columbia--(Newsfile Corp. - July 16, 2015) - David H. Brett, President and CEO, Pacific Bay Minerals Ltd. (TSXV: PBM) ("Pacific Bay" or the "Company") reports that the Company has signed a Joint Venture Agreement with Dease Lake Jade Mine Ltd. ("Dease Lake Jade") whereby Pacific Bay will advance $500,000 to fund and participate on a 50/50 basis in the 2015 proceeds of jade mining operations on claims owned by Dease Lake Jade in Northern British Columbia (the "JV"). In connection with the JV, the Company has arranged a $500,000 private placement of 10,000,000 common shares at $0.05 per share with one investor, a BC corporation owned by Alan Qiao and Jun Qiao (the "Financing"). Both the JV and the Financing are subject to TSX Venture Exchange acceptance. The Financing will also be subject to shareholder approval as the issuance of the shares would effect a change of control of the Company. The Company intends to seek shareholder approval by consent in writing from shareholders holding greater than 50% of the outstanding shares.
In connection with and on closing of the Financing, Pacific Bay will appoint to its board of directors Mr. Alan Qiao, CEO of Dease Lake Jade. In addition, the investors in the Financing have the right to appoint one additional director (two in total) at the next annual general meeting of the shareholders of the Company. The investors have also agreed to vote the shares to be acquired under the Financing in favour of all management recommendations, subject to certain limitations, for a period of one year.
Under the JV, Dease Lake Jade, whose operations in BC have been the subject of the Discovery Channel reality TV series "Jade Fever," will contribute access to its claims, mining infrastructure and equipment, while Pacific Bay will provide $500,000 is working capital and expert oversight of the Company's new strategic partner Jedway Enterprises Ltd. Jedway has over 25 years of experience in Jade mining and marketing in BC. Dease Lake Jade and Pacific Bay will jointly market any jade produced in 2015 and each be entitled to a 50% share of any proceeds. Pacific Bay will have the right to extend the JV for up to 5 consecutive seasons of Jade mining jade mining by contributing additional funds to the JV for working capital on an annual basis.
The jade mining activities will be managed by a joint venture management committee with equal participation from Dease Lake Jade and Pacific Bay. Jedway will represent Pacific Bay as an onsite operation monitor of the JV.
"This transaction will propel Pacific Bay into the exciting field of Canadian jade exploration and mining in a region that the Company already has substantial mineral assets and management has decades of exploration and mining experience," said Pacific Bay CEO David Brett. "Pacific Bay's vision is to become a leading jade explorer, miner and exporter in Canada. The Company is actively considering acquiring additional jade mining and exploration rights in BC."
"I look forward to working with the Pacific Bay team to capitalize on the exciting potential of BC jade exploration and mining," said Alan Qiao, CEO of Dease Lake Jade. "The interest in BC jade in China is strong and growing."
Pacific Bay Minerals Ltd.
Per/
David H. Brett, MBA,
President & CEO
604-682-2421
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
