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E-M:/ Menominee Co.: Back Forty & "NEWCO" -- funding, shares, updates

Michigan:  The state is taking public comment right now to finalize rules to regulate Sulfide Mining.  The last public hearing is 3-5PM this Wed. Dec. 7 at the Lansing Center.  See http://michigan.sierraclub.org/mining.shtml for info on how to provide your comments to tighten up regulations.  Acid mine drainage cannot be reversed, its effects will impact aquatic and land resources forever. 


This is imminent-- it's not only the beautiful and wild Yellow Dog Plains at risk -- the press release below outlines the current status of corporate activities that seek to bring together the financial resources to pursue mining in sulfide ore bodies in an area of many lakes and streams in Menominee County in the Back Forty Project.  The company noted below has mineral rights in 9400 acres in that area.  Read through the press release, but make sure to see the section "Back Forty Project" about 2/3 of the way down. 


The Upper Peninsula seems so distant to us here in the lower part of the state - but that doesn't make the threat any less real.  What happens in Michigan's Upper Peninsula affects all of us-- the waters there are waters of the state, and they belong to all of us.  There are at least 6 companies exploring for nonferrous metallic minerals in our Upper Peninsula right now. 

Contact the Sierra Club to find out how to become involved to help protect our precious waters from the forever-effects of sulfuric acid and acid mine drainage.

-Rita Jack, Michigan Water Sentinel, Sierra Club Mackinac Chapter


Original from:  http://www.ccnmatthews.com/news/releases/show.jsp?action="">

JML Completes $2 Million Financing; Funding Targeted For Zinc-Gold ...
CCNMatthews (press release) - Toronto,ON,Canada
JML Resources Ltd. ... Ken Lapierre P.Geo (ON) and President of JML is the Qualified Person for JML Resources Ltd. for purposes of National Instrument 43-101. ...

JML Completes $2 Million Financing; Funding Targeted For Zinc-Gold ...

CCNMatthews (press release) - Toronto,ON,Canada


JML Resources Ltd. ... Ken Lapierre P.Geo (ON) and President of JML is the Qualified Person for JML Resources Ltd. for purposes of National Instrument 43-101. ...


JML Resources Ltd.


INDUSTRY:  Mining - Precious Metals

DECEMBER 2, 2005 - 10:20 ET


JML Completes $2 Million Financing; Funding Targeted For Zinc-Gold Project


TORONTO, ONTARIO--(CCNMatthews - Dec. 2, 2005) -




JML Resources Ltd. (TSX VENTURE:JJJ) ("JML" or the "Company") is pleased to announce that it has completed a brokered private placement (the "Offering") in 2079537 Ontario Limited ("Cashco") of $2,015,900 to finance exploration work on the Back Forty project in Michigan, currently held by Aquila Resources Corp. The Offering is part of an agreed merger transaction ( the "Acquisition Agreement ") in which JML will acquire 100% of the shares of Aquila Resources Corp. ("Aquila") in return for 49,066,466 common shares of JML. Subsequently, the shares of JML will be consolidated on a three for one basis, and the Cashco will be merged with the consolidated entity on a one for one basis, to form a new company ("Newco"). Newco will have the net cash proceeds of the financing, and the Back Forty project as its focus, 36,818,335 shares outstanding, and 49,207,880 shares fully diluted. The Offering, comprising a total of 10,079,500 common share units ("Units") of Cashco for gross proceeds of $2,015,900, was placed with qualified investors. Each Unit is comprised of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.30 per share for a period of two years from the Closing Date, subject to the Company's right to accelerate the expiry date if the shares of Newco trade over $0.45 for more than 20 consecutive days. JML shares (pre-consolidation) closed at $0.07 on November 29, 2005. Jennings Capital Inc. acted as exclusive agent (the "Agent") for the Offering.


The Agent received a commission equal to 8% of the subscription proceeds payable at closing in cash and Units. The Agent was issued 932,500 agent compensation warrants (the "Broker Warrants") pursuant to the transaction. Each Broker Warrant shall be exercisable at an exercise price of $0.30 per share for a period of two years from the date of issuance.




The Back Forty Project is an advanced exploration project with an identified inferred resource of 3.1 million tonnes grade 6.8% Zn, 0.25% copper, 32 g/t Ag, and 2.0 g/t Au. The resource estimate was prepared by Aquila and confirmed and deemed creditable pursuant to National Instrument 43-101 standards in a technical report dated August 2005 by DeMatties and Monroe and first reported by JML in a press release dated August 25, 2005. Back Forty is located within the early Proterozoic aged volcanic rocks of Michigan, the eastern extension of the Penokean Volcanic Belt ("PVB") of the Southern Province of the Superior Craton. The PVB hosts several other significant VMS deposits including the Flambeau and the Crandon deposit which lies approximately 50 miles east of the Back Forty Project area. At least three lenses of zinc and gold-rich massive sulfide mineralization have been identified in a thick, intensely altered, and locally gold-bearing sequence of rhyolites, tuffaceous sediments, and intrusive porphyries. Aquila currently controls approximately 9,400 acres of mineral and surface rights in the immediate vicinity of the sulfide mineralization, as well as along the trend of prospective host rocks. The known sulfide zones are open to expansion and ground and airborne geophysical surveys indicate potential extensions of known zones as well as possible additional horizons. Since its discovery in February, 2002, approximately US$4.9 million has been spent to advance the Back Forty project.


The VMS deposit at Back Forty was discovered in February, 2002 when three holes drilled from surface returned the following results:


        Discovery Drill Holes - Section 35375




Note: Intervals noted above are apparent and not true width.


Au equals gold, Ag equals silver; Cu equals copper; Pb equals lead; Zn equals zinc m equals meters


Proceeds from the initial financing will be used to expand the known massive sulfide zones, define peripheral gold zones in altered host rocks, test new geophysical targets, and to conduct preliminary metallurgical assessment of mineralization identified to date, as well as for general corporate purposes.


Robin Dunbar CFO and Director of JML stated " We like zinc. Through this transaction JML shareholders will gain exposure to an exciting base and precious metal discovery. The Back Forty Project has excellent potential for resource expansion and additional discoveries". Mr. Thomas Quigley, CEO of Aquila stated "We are looking forward to the completion of the merger with JML Resources and the opportunity to resume drilling and to further advance the Back Forty Project."


Ken Lapierre P.Geo (ON) and President of JML is the Qualified Person for JML Resources Ltd. for purposes of National Instrument 43-101.




In accordance with the TSXV policies, JML is preparing and finalizing the documentation required to be filed according to Policy 5.2 of the TSXV, including the Management Information Circular which provides full disclosure of all the material facts relating to the RTO.


Completion of the transaction is subject to a number of conditions including but not limited to TSXV acceptance and approval by the shareholders of JML and Aquila. The transaction cannot close until the required shareholder approvals are obtained. There can be no assurance that the transaction can be completed at all.


Investors are cautioned that except as disclosed in the Management Information Circular to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of JML should be considered highly speculative.


For more information please visit JML's website at: www.jmlresources.com


Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements.


The securities being offered have not and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws, and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.


Shares Outstanding: 27,326,910


The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this release.



JML Resources Ltd.

David Black

Investor Relations


1-416-368-1539 (FAX)









Rita Jack

Water Sentinels Project

Sierra Club Mackinac Chapter

109 E. Grand River Ave.

Lansing, Michigan  48906

tel:  517-484-2372




Make all Michigan's waters fishable and swimmable.