Bitech signs deal with Greenstone

Alberta-listed Bitech Energy Resources and a wholly-owned subsidiary of Vancouver-listed Greenstone Resources have signed a formal joint venture agreement regarding the Tache property near Chibougamau, Que.

This signing follows a completed $125,000 private placement by Bitech to a private numbered company, 713910 Ontario Ltd., of 500,000 common shares of Bitech.

This private placement also includes warrants entitling the placee to purchase an additional 250,000 common shars of Bitech at a price of 35 cents per share for a period to April 30, 1988.

Bitech has used the proceeds to make its initial option payment to another numbered company, 150990 Canada Ltd., which is a wholly-owned subsidiary of Greenstone Resources.

Under the terms of the joint venture agreement, Bitech is entitled to earn one half of Greenstone’s interest in the Tache property at the earlier of either the expenditure of $1.5 million on the exploration and development of the property within three years or the receipt of a positive feasibility study regarding the property.

Greenstone’s ownership of the Tache property is subject to a 5% net profits interest to Sceptre Resources and a 1.875% net smelter return to Camchib Mines.

Bitech has also signed two letters of intent with First Exploration Fund 21987 and Co. Ltd. Partnership. First Exploration will commit $1.05 million to purchase flow-through shares of Bitech.

First Exploration will spend $400,000 to purchase 689,655 shares at an issue price of 58 cents per share. In addition, it has agreed to spend $650,000 to subscribe for and purchase shares at an issue price 20% above the market price of the shares on a closing date to be determined. In both cases, the shares will be common shares of Bitech.

These flow-through agreements are subject to regulatory approval and approval of Bitech’s proposed exploration program by an exploration review board established by, but independent of, First Exploration.