vssmnn Posted October 11, 2007 Report Share Posted October 11, 2007 I am invested in LAQ on the TSX.V since 11/2006, and todays News are a Milestone (I think so) http://www.stockhouse.ca/news/news.asp?new...74&tick=LAQ Interesting detail: Jean Luc Roy, MBA Advisory Board http://www.laquintaresources.com/advisors_...ied_persons.php Here the NEWS: La Quinta to Complete Acquisition of 7,010 Square km Gold Exploration Area in Democratic Republic of Congo10/11/2007 VANCOUVER, BRITISH COLUMBIA, Oct 11, 2007 (MARKET WIRE via COMTEX News Network) -- La Quinta Resources Corporation, ("La Quinta" or "LAQ") (TSX VENTURE: LAQ) has today applied to the TSX Venture Exchange for approval to complete the acquisition of a contiguous group of 32 exploration licences, or Permis de Recherche, in Maniema and South Kivu Provinces in South Eastern DRC, owned by Wa Balengela Kasai-Investments Congo sprl, ("WB. Kasai", or "WBK",) a Congolese mineral exploration and exploitation company and La Quinta Resources Corporation's partner in the Democratic Republic of Congo. The licences held by WBK are for an area covering some 7,010 square kilometres of the highly prospective Twangiza - Namoya gold belt. The properties in the WBK licence area have a long history of both formal and informal mining, having been extensively mined, mostly for alluvial gold, by BelgikaOr from the early 1940's to the 1970's when formal mining and exploration ceased. At least six sites of previous mining can be easily identified on the WBK properties and artisanal mining continues on much of the target areas today. The Agreement with WBK gives La Quinta the option to earn into up to 80% in a joint venture company with WBK, by funding US$ 10 million in exploration expenditure over five years, with a minimum expenditure of $2 million per year. Assuming that the exploration work, which will concentrate on outlining the hard rock gold sources of the earlier alluvial operations, is successfully concluded and properties can be taken to Feasibility Study status over the first five years of the agreement, then the Joint Venture will be entitled to develop the properties within the 7,010 square kilometre exploration licence areas by converting them to an Exploitation licence or licences, in accordance with the Code and Reglement Minier of the DRC. Malcolm Swallow, La Quinta's Chairman, commented, "La Quinta has been working in Congo for some 12 months now and has successfully advanced its Kampene gold project obtained in May of this year. Simultaneously, we have assembled a team of expert geologists and support staff in Kinshasa and in Maniema Province to move forward our projects. The completion of the 43-101 report and the victory of WBK in the Courts in Congo have affirmed their rights to these projects and our rights to enter into the Memorandum of Understanding, first signed in August last year. While the legal debate in Congo has not ended and WBK continues to vigorously defend their rights to this property, we are confident in our partner's legal tenure over these projects and also in its right to enter into an agreement with us. The National Instrument 43-101 report completed by Wardell Armstrong International this September has further confirmed the value of this ground lying between Banro's Lugushwa and Namoya deposits. This 43-101 report will form a valuable reference document for the commencement of exploration over this extensive land package." The properties to be acquired are considered to be highly prospective for gold, covering almost one third of the well defined Twangiza Namoya Gold belt and abutting and occupying almost all the ground between Banro Corporation's Lugushwa and Namoya licences, (two major gold exploration properties,) then extending some 120 kilometres to the West to LAQ's Kampene project. WBK's rights to these claims, was first established under the prior Zairian Mining Code in 1997. WBK's right to enter into a JV with La Quinta, plus its tenure over a number of these licences has been upheld by the Congolese Courts and the Government Mineral licensing office (the Cadastre Minier,) in the DRC and WBK has now received and have in their possession, the final and complete Exploration Licences, or "Permis de Recherche" for all 32 of the disputed claims, issued in late 2006 and early 2007. Further, WBK has received a written opinion from the College des Juristes of the Ministry of Mines and the Cabinet of the Cadastre Minier (the Government Authority that issues and manages mining licences in D.R. Congo,) that these Permis de Recherche are clearly the property of WBK only. This decision was signed and acknowledged by the Minister of Mines of D.R. Congo on 24th of February 2007. As a consequence of these decisions and WBK's successful case in the Commercial Court completed on March 14th 2007, negating claims by Banro Mining Congo sprl to have a prior accord with WBK, LAQ made the decision to re-commence work on the appropriate National Instrument 43-101 report on the 32 claim licence area, which was finally completed in September 2007 and is now posted to LAQ's web site and on SEDAR. The proposed acquisition of these licences was first reported by La Quinta in its news release (number 06-11) dated August 28th, 2006. Completion of this acquisition was subsequently suspended following Banro Congo Mining sprl's ("Banro Congo", a subsidiary of Banro Corporation, a TSX listed company) claim that it had a prior agreement with WBK over the same property (See LAQ Press Release: 06-18, dated Oct 23rd 2006.). On October 18, 2006, Banro Congo initiated a court action in British Columbia, claiming that it had a prior agreement with WBK and that La Quinta's entering into the MOU amounted to wrongful interference. The suit in British Columbia has remained dormant pending the final disposition of the matter in the DRC. WBK subsequently initiated legal action in the DRC against Banro Congo in Kinshasa. On March 14th 2007, WBK informed La Quinta that it had received a favourable judgement in the Commercial Court of the DRC. The Commercial Court at Kinshasa (DRC) refuted Banro Congo's claim that it held a binding agreement over WBK's licence area. The Commercial Court held that the prior protocol between WBK and Banro Congo signed in 2005 was not finalized, hence there are no obligations between WBK and Banro Congo and went on to award WBK $200,000 in damages plus costs. Banro Congo has appealed this decision to the Appeal Court in the DRC. In addition, Banro Congo has applied to the Supreme Court of Congo to have the ruling of the Commercial Court overturned and the Commercial Court President rebuked. Separately, WBK is an interested party with the Congolese Government in a legal action brought by a third party against the Congolese Government and the Cadastre Minier challenging the manner of issue of licences during the period of Force Majeur. WBK continues to vigorously defend their legal position and their validly granted Exploration Licences. Upon the commencement of the Joint Venture, La Quinta will hold a 10% interest in the joint venture company and WB Kasai will hold a 90% interest. La Quinta shall have the right to increase its interest in the joint venture company to an 80% interest by making payments to WBK totalling US$1,500,000 and issuing 8,000,000 shares of La Quinta over the first three years of the agreement. Upon completion of all share issuances and cash payments, La Quinta will be vested with an 80% interest and WBK with a 20% interest in the joint venture company. One year after the signing of the Agreement, WBK will also be entitled to nominate an additional member to the Board of LAQ. During the exploration period ownership of the concessions shall remain vested with WBK and will be transferred to the joint venture company on completion of the Feasibility Study as contemplated in the MOU and formal documentation. WBK shall be responsible for assisting the joint venture company with government relations, social programmes, local liaison and expediting of the projects in the DRC, for which it will be entitled to charge an appropriate fee. On any gold production, the joint venture company shall pay WBK a net smelter return of 2.5%. La Quinta has agreed to pay Finder's Fees in respect of the transaction in the amount of 550,000 shares payable by La Quinta in six instalments, over the first three years of the agreement, all prorated and made at the same time as La Quinta is required to make share payments to WBK; all subject to Exchange approval. There is an area of mutual interest established stretching 20 kilometres from the outside borders of any of the rights held in the joint venture company, which will encompass LAQ's Kampene project, which will be rolled into the JV at cost. A map showing the location and extent of the exploration leases; the Company's adjacent Kampene Exploration Licence area, and the overall area's relationship to the Twangiza - Namoya gold belt; plus further discussion of the initiative by La Quinta Resources in the Democratic Republic of Congo, can be found on the Company's web site at www.laquintaresources.com It is expected that LAQ and WBK will commence work on the Licence area as soon as the acquisition process is complete. The completion of the proposed transaction remains subject to the approval of the Exchange. Wa Balengela- Kasai Investments Congo sprl is based in Kinshasa and holds extensive mineral leases in the DRC. WBK has exploration agreements with two major resource groups for Diamonds and has been instrumental in introducing other Companies into Congo for Copper and Cobalt. WBK's principals are Dr. F. Bodika, a Congolese thoracic surgeon and Mr. J. Malaba, a Congolese businessman both of whom have extensive experience in the mineral industry over the last 30 years. Malcolm Swallow, the Chairman of the Company, is a Vancouver based Mining Engineer, (B.Sc. - Hons. Mining Engineering - Imperial College, London,) with over 35 years operating and management experience in the Industry. He is an Associate of the Royal School of Mines, a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer in the UK. He is also a registered Professional Engineer in British Columbia, Canada and acted as the Qualified Person for this news release, having visited a number of the properties in the 7,010 square kilometre WBK licence area. This Press Release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. On behalf of the Board Malcolm JA Swallow, Chairman and CEO The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release, which has been prepared by management. Contacts: La Quinta Resources Corp. Glen Watson Senior Vice President (604) 685-1818 or Toll Free: 1-877-891-4653 Email: email@example.com Website: www.laquintaresources.com SOURCE: La Quinta Resources Corporation mailto:firstname.lastname@example.org http://www.laquintaresources.com Copyright 2007 Market Wire, All rights reserved. Link to comment Share on other sites More sharing options...
This topic is now archived and is closed to further replies.