Adelaide, Jan 29, 2007 AEST (ABN Newswire) - ADV group (ASX: ADS) is pleased to announce that it has entered into an agreement to pay 50% of the 2007 drilling contract via the issue of shares in ADV Group. The drilling contractor, Saudi Canadian Mining Company, approached Vertex with the offer to become a shareholder in ADV.
Under the agreement 50% of each Monthly Drilling Invoice will be paid via the issue shares in ADV group at the weighted average market price at the time. All shares issued under the agreement will be escrowed for a period of 3 months. The terms of the agreement are outlined below:
Start Date - January 2007
End Date - January 2008 or until the completion of a minimum 10,000 metres of drilling
Amount to be paid via the Issue of Shares - 50% of the Monthly Drilling Cost Invoice (the balance to be paid in cash)
Date for Issue of Shares - within 3 working days of the receipt of each monthly drilling Invoice
Issue price of Shares - Weighted volume average market price in the 5 working days prior to date of issue
Share Escrow - 3 months from the date of issue
Bonus Options - One option for every 10 shares with a period of 12 months and the same conversion price as the issue price (for example ADV would half $200,000 monthly invoice via the issue of 500,000 shares at 20 cents and 50,000 20 cent options)
Option Escrow - 6 months from the date of issue Commenting on the agreement
ADV Group Chairman, Mr Fletcher Quinn, said:- "We were delighted to take up Saudi Canadians offer to effectively partner with them as they have considerable insight into the potential of the Arabian Shield. This shows the high esteem held for the Vertex team and their project areas in Saudi Arabia. It also has the obvious advantage of cutting the company's largest single cash expense over the next 12 months in half.
Commenting on the agreement with ADV Mr Ahmed Gulaid, The Saudi Canadian Mining Company CEO, said:- We believe that the Arabian Shield will become one of the world's great mineral provinces. We think Vertex is well placed to take advantage of this with a portfolio of quality assets, first mover advantage, and solid project development skills.
We are close to Vertex as we first sponsored the business visa for the Vertex CEO, Ines Scotland, to visit Saudi Arabia. We have been following the development activities and we look forward to a lengthy relationship with ADV both as shareholders and partners.
ABOUT THE SAUDI CANADIAN MINING COMPANY
The Saudi Canadian Mining Company (Saudi Canadian) is the largest base and precious metals drilling company in Saudi Arabia. Additionally, Saudi Canadian provides contract mining services, geophysics services and general operational support. The Company operates diamond core and reverse circulation drill rigs throughout the Arabian Shield. Saudi Canadian provides exploration drilling services to Ma'aden who have 16 exploration geologists on staff, two gold projects coming into production and four operating gold mines.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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