Waseco converts debts to royalty

Canadian exploration company Waseco Resources Inc. which is listed on TSX Venture Exchange announced on Wednesday that it has entered into an agreement with another Canadian explorer Diadem Resources Ltd. to convert $250,000 of debt into a 2% NSR Royalty on its 60% interest in the Tewah Alluvial Gold Project in Kalimantan; and royalty in Waseco?s diamond project.

Waseco can repurchase each of these royalties for $500,000 at any time prior to the commencement of commercial production or for $1 million at any time prior to the 1st anniversary of commercial production.

In conjunction with this transaction, Diadem has agreed to forego all of its other interests in the Tewah Project and Waseco has agreed to first offer its interest in the diamond project to Diadem should it sell or joint venture.

Waseco has also agreed to issue 1,160,000 common shares to PT. Mas Bumi, an Indonesian company, in full settlement of services performed in Indonesia over a number of years. These shares are also being issued at $0.10 per share, and will be subject to a one-year hold. (alex)