Agreement To Aquire Cairo Claims

Wednesday, 29 October 2008 00:00

Pro Minerals Inc. and its Board of Directors are pleased to announce that the Company has entered into an agreement to acquire a 100% interest in 4 mineral claims located in the Cairo Township, in the Province of Ontario.

Pursuant to the terms of the Agreement, Pro Minerals can acquire a 100-per-cent interest in the claims by paying the optionor a total of $10,000 and a issuing a total of 100,000 common shares of the Company as follows:

• $5,000 upon acceptance of the Agreement by the TSX Venture Exchange;
• 50,000 common shares upon acceptance of the Agreement by the TSX Venture Exchange;
• $5,000 on the first anniversary of the date of the Agreement; and
• 50,000 common shares on the first anniversary of the date of the Agreement.

The optionor will receive a 2.0% Net Smelter Return ("NSR"), of which the Company may purchase one-half of the Royalty for the sum of $500,000. The Company also retains a First Right of Refusal on the balance of the NSR. The shares to be issued to the optionor will be subject to a hold period in accordance with the policies of the TSX Venture Exchange. The agreement is subject to the approval of the TSX Venture Exchange.

The Company is also pleased to announce that it has completed the private placement announced on August 14, 2008 for 2,750,000 units at a price of $0.10 per share for net proceeds of $275,000.00. A finder's fee in the form of warrants of the Company entitling the holder to purchase up to 458,000 shares of the Company at a price of $0.10 per share for a period of two years were issued to the finder. The Company will not be proceeding with the private placement for 300,000 units at a price of $0.10 per share announced on the same date.