Saturn Minerals Inc announced that Jameson Resources Ltd via its wholly owned Canadian subsidiary NWP Coal Canada Ltd. has acquired a 10% interest in the Company's Red Earth coal property for a cash payment of USD 46,080.
Jameson has also entered into an option agreement with Saturn whereby Jameson can earn up to a 60% interest in the property by expending USD 870,000 in exploration expenses over three years following which the Red Earth project will become a 60/40 joint venture between Jameson and Saturn. During the term of the option, Jameson will make cash payments to Saturn equivalent to USD 5 and USD 10 per hectare in years two and three, respectively (the Red Earth property is 4,608 hectares in size). Saturn will also retain a 7% FOB royalty interest in all future mineral production from the Red Earth property.
Jameson Resources Ltd. is a coal exploration company based in Perth, Australia, focused on the identification and acquisition of strategic coal projects in Western Canada via its wholly owned Canadian subsidiary, NWP Coal Canada Ltd. Jameson's coal experience and participation in the area is a welcome development for eastern Saskatchewan as it continues to emerge as a new Canadian coal region, and Saturn welcomes the coal expertise of its new Australian partners.
The Red Earth property is 4,608 hectares in size and comprised predominantly of farmland. It is located approximately 30 km from the town of Carrot River, Saskatchewan, approximately 25 km from rail and immediately adjacent to paved provincial Highway 55.
The Red Earth property was acquired by Saturn in 2008 based on the underlying trend of Mannville Group sediments which, since 2009, have been proven by Saturn and other area operators to host previously unknown coal seams of unusual thickness.
Since 2010 Saturn has completed over 241 line-km of airborne GEOTEM(R) and 744 line km of airborne gravity survey over the Red Earth property to assess coal exploration potential with respect to through-faulting and karstification related geological settings favourable for development of long lasting coal forming paleoenvironments. These airborne surveys have identified several geophysical signatures on the Red Earth property that display characteristics similar to the latest Mannville Group coal discoveries that advanced exploration is merited, including diamond drilling.
Jameson will be preparing a first phase exploratory program for the Red Earth property to test a selection of these anomalies during the coming exploration season. In connection with the Agreement, Saturn has agreed to issue an initial 75,000 shares and an additional 175,000 shares or USD 37,500 over a two year period as a finder's fee. The Agreement and all related finder's fees are subject to the approval of the TSX Venture Exchange.
