Consolidated Venturex and Pacific North West agree on 11 claims
Consolidated Venturex Holdings Ltd CVA
Shares issued 6,920,936 Feb 5 close $0.30
Mon 8 Feb 99 News Release
Also Pacific North West Capital Corp (PFN)
Mr. Douglas Mason and Mr. John Royall report
Pacific North West Capital and Consolidated Venturex Holdings have reached
an agreement in principle regarding PFN's grant to CVA of an option to earn
a 50 per cent interest in 11 mining claims, prospective for platinum group
metal mineralization, near Sudbury, Ont. Two of the mineral claim units are
subject to a 2 per cent third party net smelter royalty interest.
The 11 claims represent three separate property interests acquired or
staked by PFN which cover Nipissing gabbro and associated sediments.
Initial grab samples taken from the Davis property returned values up to 6
grams per tonne combined platinum, palladium, and gold. On the Sargesson
Lake property, disseminated copper and iron sulphides have been identified
on several areas of the property, hosted in a steeply dipping Nipissing
gabbro sheet. The third claim group lies due north of a PFN project in
Janes Township.
Comprehensive exploration programs on the properties, directed to platinum
group metal mineralization, are planned to commence in May 1999. Concurrent
with these initial programs, trenching will commence on identified
mineralization on the Davis property. Drilling will follow on developed
targets.
CVA will earn its 50 per cent interest by making the following payments and
property expenditures:
1. cash payments to PFN totalling $27,500;
2. the issuance to PFN of a total of 200,000 shares of CVA;
3. incurring a total of $500,000 in exploration expenditures.
CVA is obligated to make $12,500 of the total cash payments and issue
50,000 shares and to incur not less than $150,000 of the exploration
expenditures.
Also, as an integral part of this acquisition, CVA has negotiated two
private placements. The first private placement will raise $150,000 by the
issuance of 600,000 units at 25 cents, each unit consisting of one share
and one warrant, each warrant exercisable into an additional share at 25
cents in the first year and 30 cents in the second year. The second private
placement will raise $250,000 by the issuance of 1,000,000 flow-through
units at 25 cents, each unit consisting of one flow-through share and one
warrant, each warrant exercisable into an additional share at 25 cents in
the first year and 30 cents in the second year.
The proceeds from these private placements will be used toward CVA's
obligations under the option agreement with PFN and for general working
capital purposes.
These transactions are arm's-length.
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