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NPN INVESTMENT GROUP ANNOUNCES LOI ON “DIVIDE” PROPERTY IN ALASKA AND FINANCING
August 16th, 2007, VANCOUVER, B.C. – NPN INVESTMENT GROUP (the “Company”) (NPN-TSX: V) announces today that the Company has entered into a letter of intent (“LOI) with Millrock Resources Corp. (MRO – TSX-V) to joint venture the exploration of the Company’s recently acquired Divide Property.
Under the terms of the LOI, Millrock can earn a 50% interest in NPN’s rights to the Divide Property by paying one half of NPN’s obligations under its Divide Option (as defined below) and one half of the costs to explore the property. Millrock will make payments to NPN totaling $500,000 and issue 500,000 common shares of Millrock over the next 4 years. Payments by Millrock to NPN begin with $7,500 plus 50,000 common shares of Millrock on acceptance by the TSX Venture Exchange, followed by $22,500, $45,000, $75,000, $125,000 and $225,000 on the six month, first, second, third and fourth anniversary date of the Divide Option respectively and common share issuances of 50,000, 150,000 and 250,000 shares on the first, second and third anniversary of the Divide Option respectively. (All amounts shown are in US dollars.)
Millrock will be the operator and general partner under the terms of the proposed joint venture and together with NPN will jointly develop work programs and make decisions on exploration and development. The parties have agreed to work diligently to complete a formal joint venture agreement in the next 30 days.
Upon meeting all the obligations under the Divide Option, each party will own a 50% interest in the Divide Property subject to a net smelter return (the “Royalty”) in favour of the Lajack Group based on the London Bullion Market afternoon gold price fix, of up to 5% on precious metals and 3% on base metals. The Royalty can be bought down by 1% on payment of US$1,000,000.
On August 14, 2007, the Company entered into an agreement (the “Divide Option”) with a private group of 4 individuals, including David Lajack, a director of NPN, to acquire a 100% interest in a lode gold prospect in Alaska known as the Divide Property. The Divide Property is located in the prolific Cape Nome mining district about 27 miles (45 km) north of Nome, Alaska. Access to the property is via the Nome-Taylor highway that crosses over the eastern boundary of the 3520 acre claim block.
The Company also wishes to announce it has arranged a non-brokered private placement of up to 3.5 million units totaling 1,225,000 dollars at a price of $0.35. Each unit comprises one common share of the company and one-half common share purchase warrant entitling the holder to purchase one common share at $0.45 for a period of 24 months after the closing date. Should the closing share price of NPN exceed $0.75 for a period of 21 consecutive days warrant holders will have 30 days from that time to exercise the warrants or the warrants will expire. Maximum commissions of 8% and brokers warrants of up to 8% may be payable.
A drill has been mobilized and drilling will begin immediately.
This agreement, as well as the underlying “Divide” agreement, is subject to TSX approval.
ON BEHALF OF THE BOARD
Signed “Michael England”
Michael England, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Toll Free: 1-888-945-4770
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.