Little-known Halo Resources In Good Company
Signs a Letter of Intent with Goldcorp

Barry Critchley, Off the record
April 25, 2006
Financial Post Article

For a company that isn't that well known, Halo Resources Ltd. continues to add some well-known names to its portfolio. Yesterday it announced that it had signed its second farm-in agreement in the past couple of months with a major producer.

Halo Resources - whose shares are listed on the TSX Venture Exchange and which defines itself as a "Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits" - has inked a deal with Goldcorp Inc.

The deal is what is known as a letter of intent and relates to some properties in Red Lake, Ont. Sources in the mining community report that a letter of intent is the first stage in the process that will end up - provided the due diligence turns up trumps - with the two companies signing a binding agreement.

The letter of intent will run for about two months. During that period, Halo will undertake due diligence on the Red Lake properties, while the lawyers will get to work on drafting the binding agreement, the agreement that will be signed at the end of the due diligence period.

One legal wag said that thickness is one key difference between the two agreements - the letter of intent and the binding agreement.

"In one case, the document is about 100 pages; in the other case, it's about 10 pages," noted one source. Another difference is that the lawyers can charge more for the weightier tome.

Halo's deal with Goldcorp will follow the usual script: It will be required to spend a certain amount of money over a certain period of time to earn a certain interest.

Halo's shares closed yesterday at $0.73, up $.09. Volume was larger than normal: 821,331 shares were traded, which is about 4.8 times normal.

Halo, whose chief executive is Marc Cernovitch and whose chief operating officer is Tom Healy, has been busy.

On March 22, Halo announced that it had "entered into three option agreements" with Hudson Bay Exploration and Development Co.

At the time, Halo said that "These agreements grant Halo the right to acquire a 100% interest in HBED's mining claims and mineral lease in the Sherridon region."

For those not familiar with Manitoba, Sherridon is about 70 km northeast of Flin Flon.

Under the terms of that option agreement, Halo has the right to acquire a 100% interest through a series of cash and share payments and escalating work commitments over the three-five year terms of the agreement."