MxMining

This is quite old news but my opinion is that something really strange happened with Noront when they came to Mexico. My biggest question out of the whole thing is "Where EXACTLY is the El Verde Property?"

Here's a short quote from their Nov7/2007 News Release.

El Verde Proyecto

The El Verde property agreement called for payments totaling $745,000 US, 650,000 shares and work costs of at least $600,000 on or before November 10, 2010. By executing these payments and performing the required work programs Noront would earn a 100% interest in the claims subject to a 1.5% NSR. Noront would have the right to purchase 2/3 of the NSR or 1% at any time by paying $1.5 million US. Please refer to Noront press release dated November 23, 2007 for details of the agreement and a history of the project.

The amended agreement calls for a one time payment of 60,000 shares in exchange for a 100% interest in the claims subject to a 1.5% NSR. Two thirds of the NSR or 1% may be purchased at any time by Noront for $1.5 million US.

What really gets me is how substantial these numbers were at the time and how much different they are from the amended agreement.

At the bottom of the Nov7/2007 News Release it states that the Noront had about 118,000,000 shares outstanding and that means that during the first round of negotiations Noront was willing to put up almost 3/4 of a million dollars for this one property (doesn't include the $600,000 work commitment) and more than 1/2% of - get this - all their outstanding shares.

Noront also mentions a reference to the details of this property agreement in a News Release dated November 23/2007 which is actually AFTER the amended agreement. We thought that it might be a typo so we looked at all the November News Releases for the previous years on SEDAR and could not find anything that that refers to the actual original agreement.

Always do your Due Diligence - if the company isn't going to tell you exactly where the property is and who really owns it or if they paid their bi-annual fees to the government on it - you're probably best walk away!