Dunlop sold an option for VMS to earn an interest. For VMS to earn that interest it required specific performance of certain terms. Speak of that which you know. You don't know mining agreements.
Vancouver , British Columbia , Canada . October 12, 2006 . Rare Earth Metals Corp. (REM - TSX -V) (the “Company”) is pleased to announce that it has finalized its property option agreement dated August 1, 2006 with W. Bruce Dunlop Limited (“BDL”) to acquire 50% of BDL’s right, title and interest in and to the Reed Lake mining claims located in Snow Lake, Manitoba with a further option of 30% interest for a total 80% interest in the property. The transaction was originally announced in a release dated May 10, 2005 wherein the Company had disclosed it had entered into a letter of intent with BDL to acquire the option.
Pursuant to the terms and conditions set forth in the property option agreement, the Company will pay the aggregate sum of $35,000, make expenditures of an aggregate of $100,000 and issue 50,000 common shares in the capital stock of the Company to BDL over a three year period. The Company shall have the option to acquire a further 15% interest by making further expenditures of $300,000 and earn the remaining 15% interest by delivering to BDL a bankable feasibility study.