Dala Project Agreement Amended and Private Placement
GEM INTERNATIONAL RESOURCES INC.
3467 Commercial Street, Vancouver, BC V5N 4E8
Telephone: (604) 871-9916/ Facsimile: (604) 871-9926
January 24, 2017 Symbol: GI
News Release
Dala Project Agreement Amended and Private Placement
Gem International Resources Inc. (the “Company ”) (TSXV: GI) is pleased to announce that
subsequent to its news release dated January 9, 2017, it has entered into an agreement (the
“Amendment Agreement”) with Global Gems International Limited (“Global Gems”) to amend
its existing arrangement for the earn-in of an interest in the Dala diamond exploration Project in
the Lunda Sul Province in Angola.
As announced earlier, Global Gems holds a 45% interest in the Dala Project. The Amendment
Agreement provides that the Dala Project would be enlarged to include exploration and
exploitation rights for kimberlites within th e Dala License including the 6 known kimberlite
pipes located by previous operators. These only received very limited exploration and have not
been fully evaluated. Numerous magnetic kimberlite targets remain untested at Dala and an
extensive data base exists,
Under the Amendment Agreement the Company may acquire 88% of Global’s 45% interest in
the restructured Dala Project by paying to Global Gems the amounts of US$300,000 on or
before each of the 3 rd and 4 th anniversaries of TSX Venture approval and US$400,000 on or
before the 5 th anniversary of such approval. The Company would also be required to incur
US$13,000,000 in exploration and development expenditures over 5 years (US$3,000,000 for
each of year 1 (which must be raised and paid by May 31, 2017) and year 2, US$2,000,000 for
year 3, and US$2,500,000 for each of years 4 and 5). The US$300,000 already provided to
Global Gems as start-up capital would be credited against year 1 expenditures. The Company
shall be entitled to a share of any revenues generated from saleable products, if any, from the
property prorated to the proportion of expenditures spent to the total expenditures to be spent
under the Amendment Agreement.
The Company will also be required issue to the principals of Global Gems 30,000,000 shares
(10,000,000 shares on each of the 3 rd, 4th and 5th anniversaries of TSX Venture approval). After
completing the private placement of not less than CDN$500,000, the Company will pay to Global
Gems the amount of US$150,000 (the “Payment”), which also will be credited against year 1
expenditures.
Accordingly, the Company intends to carry out a private placement (the “Financing”) to raise
proceeds of up to CDN$500,000 from the sale of up to 10,000,000 units at a price of CDN$0.05
per unit. Each unit will consist of one common share and one non-transferable share purchase
warrant for the purchase of one further common share of the Company within two years of the
date of grant at the price of $0.15 per such common share.
The funds raised will be used for Company working capital, the Payment, and the preparation of
legal documents and regulatory approval costs related to the closing of the Amending
Agreement.
The Financing is subject to regulatory approval and customary resale restrictions.
A maximum allowable finder’s fee for funds raised may be payable in cash, shares or warrants
in accordance with the policies of the TSX Venture Exchange.
On behalf of the Board of
GEM INTERNATIONAL RESOURCES INC.
Per:
“Denis Hayes”
Denis Hayes, CEO / Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.