Altai Resources Lands New O&G Permit, Inks LOI
Altai Resources Inc. has recently acquired an Oil and Gas Permit No. 2008PG988 totaling 24,042 hectares at Sept Iles on the Upper St. Lawrence, Quebec. This Permit covers a gas well drilled in 1970 that encountered gas in recent sediments at a depth of 270 feet (90 meters) and was plugged and abandoned. As the underlying rocks are part of the Canadian Shield, the gas is probably seepage gas from Paleozoic Sediments under the St. Lawrence estuary.
Subsequently, Altai has entered into an Earn-In Option Letter of Intent (the "Letter of Intent") with RJK Explorations Ltd. ("RJK") on this Permit. In order to fulfill the terms of the Letter of Intent, RJK will issue 500,000 RJK shares to Altai on signing the Letter of Intent, drill a minimum of 1,200 meters in the Permit and, if the results of the initial drilling are satisfactory to RJK, issue a further 500,000 RJK shares to Altai. At that point, RJK will have earned a 100% interest in the Permit with Altai retaining a 15% Gross Royalty. The transaction is subject to approvals of the Altai board and applicable regulatory authorities.