Amseco Exploration Ltd. has accepted a letter of intent dated July 25, 2008 (the “Letter of Intent”) relating to an option and joint venture with Auger Resources Inc. (“Auger”) for the exploration of the Starchrome property (“Starchrome Property”) consisting of 28 mining claims located in the Coleraine township in the Thetford Mines region, Quebec.
Pursuant to the terms of the Letter of Intent, Auger shall have the option to acquire a 50% interest in the Starchrome Property in consideration for: (i) an undertaking to participate in a private placement of securities of Amseco for aggregate proceeds of $200,000; and (ii) a commitment to incur $500,000 in exploration expenses prior to the 24-month anniversary date of the execution of the Letter of Intent.
Auger can acquire an additional 25% interest in the Starchrome Property by incurring an additional $1,000,000 in exploration expenses on or before the 36-month anniversary date of the execution of the Letter of Intent.
Amseco and Auger have agreed to enter into a definitive option and joint venture agreement within 30 days following the execution of the Letter of Intent.
Amseco Exploration Ltd.
President and Chief Executive Officer