This may make a difference for SYH if PG starts finding something.
PG wouldn’t get involved if there wasn’tsomething to gain.. IMHO
Mainstream Minerals Corporation signs LOI with Premier Gold Mines Limited on the Bobjo project/ Non– Brokered Financing
October 14th, 2010– Winnipeg, MB – Mainstream Minerals Corporation (TSX-V: MJO) (“Mainstream”) is pleased to announce that ithas signed a letter of intent (the "Agreement") with Premier Gold Mines Limited(TSX:PG) ("Premier") with respect to Mainstream's Bobjo Property.
The Agreement with Premier provides that Mainstream will grant Premier an option to earn up to a 70%interest in Mainstream's Bobjo property (the "Property"). As part of the Agreement, Premier will operate a due diligence drill program that will be funded by Mainstream to confirm earlier results from drilling completed prior to a potential acquisition by Premier, subject to the terms of the Agreement.Following a successful program, Premier can earn its interest by making certain cash and share payments to Mainstream and performing additional exploration onthe Property. The Agreement is subject to the approval of the TSX VentureExchange Inc.
Mainstream's President andChief Executive Officer, Michael Romanik, said: "We are pleased to be teaming upwith Premier on our Bobjo Property. Premier has an experienced technical staffthat will ensure the Bobjo Property reaches its full potential. Mainstreamshares Premier’s enthusiastic outlook in regards to the underexplored region ofthe eastern Birch-Uchi belt. Over the past several months we have been working hard at putting together new projects within the area.”
Non-Brokered PrivatePlacement of $450,000
Mainstream is also announcing a non-brokered private placement which is anticipated to close on or about October30th,2010. The Units connected with this non-brokered private placement will be offered to qualified subscribers resident in British Columbia, Alberta,Saskatchewan, Manitoba, Ontario and Québec. This non-brokered private place mentwill be comprised of up to 5,000,000 Units at .09 per Unit (the“Non-Flow-Through Subscription Price”) for gross proceeds of up to $450,000.00.Each Unit is comprised of one non-flow-through common share and one half (1/2)of one non-flow-through common share purchase warrant. Each whole common share purchase warrant may be exercised to purchase one common share upon payment
.12 for a period of 12 months following the date of issuance. A finder’s feeequal to 8 % of the subscription proceeds may be paid to registered dealers forservices rendered in introducing certain subscribers to the offering. The closing of this non-brokered private placement is subject to the approval of theTSX Venture Exchange Inc. The shares issued in connection with this non-brokered private placement will be subject to a four-month plus one-day hold period.
Mainstream Minerals intendsto utilize the proceeds from the subscription for Units for working capital and for general corporate purposes.
