i8email:

See a couple of my previous posts below to get up to speed re: LRU-SOR amalgamation. Long story short... SGX optioned Kerrs to Sheltered Oak Resources (private company, SOR)... Lucrum Capital (LRU-p, public company) taking over SOR... SGX will get shares of new company (~13% assuming exercise PP right)... Kerrs drilling postponed until this closes and approved (i.e. maybe this week or next)... 1 Kerrs hole drilled not assayed...

P.S. Lucrum filed documents today re: $1 million (2.5 million share) PP w/ Canaccord... this was component of amalgamation agreement... just another hurdle planned... FYI... this gives new company more than enough $$ to do some additional exploring at Kerrs.

red911

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Re: Kerr,s Sheltered
Posted by: red911 on July 09, 2008 08:17AM

In response to: Re: Kerr,s Sheltered by w6w9t8015

This is more great news. Good find w6w!

Wonder when Lucrum/Sheltered Oak combo company will start to trade? Lucrum has been halted since amalgamation agreement was first announced on Jan. 22, 2008. Maybe soon?

FYI… As per Kerrs property agreement from Feb 8, 2007 NR, SGX has a "meaningful share position in Sheltered Oak" (i.e. 180k of OAK + 500k warrants/options). I wonder how many shares of 'new company' that will translate into for SGX? There are lots of numbers in the NR so I will do some calculations. As per June 2, 2008 Lucrum NR posted below, only 17,825,169 common shares of ‘new company’ estimated to be outstanding post amalgamation… and that includes $1 million PP… gotta like those numbers.

If the new Lucrum/Sheltered Oak company strikes whatever EXS has recently discovered this could be a very valuable/significant SGX investment. Plus SGX is the operator, is receiving a management fee equivalent to 15% of the Exploration Expenditures, and has a “Back-in Option” which will allow Sage to maintain operating and ownership control of the Kerrs property. Win-win-win situation for all parties involved IMO. Good work Nigel.

Again, this is great news... SGX will get shares in this 'new' public company... Kerrs drilling will begin in full force all year-round... Sheltered Oak owns their own drill… given recent apparent discovery at Eastford Lake (EXS) we should likely see some great results… and don’t forget… "Following completion of drilling, Sheltered Oak Resources and Lucrum intend to finalize and file a technical report on the Kerrs property in accordance with National Instrument 43-101."... does this mean completion of the upcoming drill program?...

P.S. excerpt from a previous red911 SH post re: Kerrs, Eastford Lake, etc.…

“IF EXS-v has hit big at Eastford Lake, IMO SGX is a very serious area play and we should see some price movement to reflect that. Kerrs used to be SGXs only property in Ontario and has only been through 2 phases of drilling (2005), with the 3rd currently underway or about to underway. 2005 seems like a long time ago... but SGX did not forget about Kerrs in the meantime. SGX has been very active staking, increasing their land position from ~2,200 acres in 2004 to 18,883 acres in Feb 2007 (maybe even larger now)... for comparison EXS-v Eastford Lake property is ~7,657 acres (Phase 4 drilling just competed). In addition, during that time, SGX has formed an excellent relationship with the Wahgoshig First Nation and Sheltered Oak Resources. They signed an MOU with Sheltered Oak that "sets the stage for all three parties to move ahead with drilling on the Kerrs gold property". The following release explains this very important step in greater detail:

http://paguntaka.org/2007/09/28/mini...

As we can read from SGX website: "There is compelling evidence that the “East Ford Lake Gold boulders” were glacially eroded from subcroppings of the “Kerrs Gold System”. Glaciers are massive and advanced and retracted over this entire land package many times. If EXS-v hits, it is likely part of the same system (that SGX has already started to discover). Therefore, the potential for this entire area to be huge is significant.

In short, SGX may have drilled their land "many months ago" but they certainly did not forget about it. “

IMO we now know why SGX has been so quiet re: Kerrs... there have been a lot of ‘little’ things that needed to be done… seems everything may now be in place… Great work SGX IMO. Remember Nigel always said he believes there is a mine at Kerrs… we’ll see.

Thanks again w6w!

red911

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Lucrum Capital shines more light on Sheltered Oak RTO

2008-06-02 17:42 ET - News Release
Mr. Patrick Morris reports
LUCRUM CAPITAL CORP. ANNOUNCES ENTRY INTO DEFINITIVE
AGREEMENT

Lucrum Capital Corp. has entered into an amalgamation
agreement with Sheltered Oak Resources Inc. and Lucrum's
wholly owned subsidiary, Lucrum Acquisition Corp., in
respect of a proposed qualifying transaction that is to
be conducted in accordance with TSX Venture Exchange
Policy 2.4 concerning capital pool companies. This
transaction was first announced by Lucrum in a news
release reported in Stockwatch on Jan. 23, 2008.

Pursuant to the amalgamation agreement, it is
contemplated that Sheltered Oak Resources will amalgamate
with Lucrum Acquisition, and the amalgamated entity will
become a wholly owned subsidiary of Lucrum. Following
completion of the transaction it is expected that a
minimum of 17,825,169 common shares of Lucrum will be
outstanding, 4,246,143 Lucrum warrants will be outstanding
and up to 450,000 Lucrum stock options will be outstanding.
Upon the closing of the amalgamation agreement and
assuming the transfer of 1,956,360 common shares of
Lucrum from the principals of Lucrum to the principals
of Sheltered Oak Resources, the current shareholders of
Sheltered Oak Resources are anticipated to hold
approximately 72 per cent of the outstanding shares of
the resulting issuer.

The amalgamation is conditional, among other things, on
the completion of a private placement by Lucrum of 2.5
million common shares of Lucrum at 40 cents per share to
raise gross proceeds of $1-million. The agent for the
private placement is Canaccord Capital Corp., which will
receive a commission equal to 8 per cent of the gross
proceeds of the offering, payable in cash, common shares
of Lucrum or a combination thereof at the discretion of
the agent, and will also receive that number of agent's
warrants equal to 8 per cent of the number of common
shares of Lucrum issued in the private placement. Each
gent's warrant will be exercisable into one common share
of Lucrum at a price of 40 cents per share for a period
of 12 months from closing of the private placement. The
agent is also entitled to receive a $15,000 administration
fee and reimbursement of all expenses incurred by the
agent in connection with the private placement. The
proceeds of the private placement are intended to be used
by the resulting issuer in connection with the exploration
of the Kerrs property.

As required by the terms of the letter of intent, as
amended, and following satisfactory completion of due
diligence in regard to Sheltered Oak Resources by Lucrum,
Lucrum paid a non-refundable deposit of $25,000 to
Sheltered Oak Resources. Sheltered Oak Resources is in the
process of drilling the Kerrs property, a property in
which it holds an undivided 55-per-cent interest as
described in a news release reported in Stockwatch on
Jan. 23, 2008. Following completion of drilling, Sheltered
Oak Resources and Lucrum intend to finalize and file a
technical report on the Kerrs property in accordance with
National Instrument 43-101.

We seek Safe Harbor.

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Kerrs...
Posted by: red911 on August 18, 2008 08:28PM

Lucrum - Sheltered Oak amalgamation receives conditional approval. Closing expected to occur on Aug. 27, 2008. Lots of stuff (i.e. 'Filing Statement' 149 pages; 'Technical Report on Kerrs Gold Property' 131 pages; etc.) filed on sedar.com for Lucrum Capital Corp. but does not appear to be showing up yet... but documents are showing up on 'sedar' section of stockwatch.com if anyone has access.

Haven't been through Technical Report (dated June 15, 2008) yet but is quite detailed with lots of maps, diagrams, and recommendations. A couple of interesting quotes re: 2008 drill program... no mention of assays but see third quote below...

"On May 15, 2008, the phase 2 extended drilling program commenced with the completion of one drill hole (DDH K-08-20) to provide sufficient costing to meet the prior expenditure commitment of $100,000 for a qualifying transaction."

"DDH K-08-20: DDH K-08-20 was collared on line 7+00N and 5+75W at an azimuth of 132° with a dip of -60°. The hole was drilled to a total depth of 386 m and planned to test the up-dip extent of the GCQ zone intersected in DDH K-05-06. A thick intercalated sequence of mafic pillow flows, feldspar porphyry and ultramafic flows was intersected from 54m to 271.6 m. This sequence was followed by a highly magnetic, serpentinized, siliceous ultramafic flow sequence from 271.6 m to 350.1 m overlying a silicified mafic feldspar porphyry unit to the end of the hole at 386 m. The altered, silicified stratigraphy from 202.8m to 350.1 m suggests proximity to the GQC zone intersected in K-05-01 which is located along strike at 400m to the northeast."

"The 2008 Phase 2 extended drilling program employed the same supervision stated above. However, Salo Drilling, based in Kirkland lake was contracted to carry out the drilling, staging their operations from Timmins. HCG personnel transported the core from the Kerrs Property to a core processing facility located at the Wahgoshig First Nation, 20 km. from the project site. The drill core from hole K-08-20 was logged with no sample intervals identified until approval for the phase 3 program is granted by SOR."

This 2008 hole not assayed for obvious reasons (i.e. amalgamation had to be finalized). Additonal 1,700m drilling program planned to commence very soon.

Based on my calculations, SGX could own more than 10% of this amalgamated company... assuming they exercise right to participate in $500k PP... they also still have 45% ownership of Kerrs, will be operator responsible for all prospecting, exploration, development and mining operations, will receive a management fee equivalent to 15% of the Exploration Expenditures... PLUS... SGX "will have a “Back-in Option” which will allow Sage to maintain operating and ownership control of the Kerrs property."

Long time coming but GREAT to have this done... especially in light of recent and pending EXS-v results... remember we have been told SGX has adjusted drilling plans because of EXS-v discovery.

I have lots of reading to do. :D

red911