Frank, this news release out today FYI:
TROYMIN RESOURCES LTD.
NEWS RELEASE
TROYMIN FINALIZES JOINT VENTURE AND
PRIVATE PLACEMENT FINANCING WITH De BEERS
Calgary, Alberta June 18, 1998
Troymin Resources Ltd. (TYR-ME,ASE) is pleased to report that its
previously announced joint venture agreement has been finalized with
Monopros Limited, a wholly owned Canadian subsidiary of De Beers, the
world's leading diamond producer. Pursuant to the terms of the agreement,Monopros has the right to earn up to a 60% interest in Troymin's Buffalo Hills Diamond Prospect located in northern Alberta. Monopros has also
purchased, by way of private placement, 450,000 units of Troymin at a price
of $0.70 per unit, each unit consisting of a common share and one warrant to
purchase one additional common share of Troymin at a price of $1.05 per
share for a period of two years.
The agreement provides that Monopros has the right to earn a 51% interest
by incurring minimum total expenditures of $5.5 million on a multi-staged
exploration and development program by February 28, 2002, of which $0.5
million must be spent by February 28, 1999. Monopros can earn a further 4%
interest by financing Troymin's share of a full feasibility study for the
construction and development of a mine. If Monopros has not spent a minimum
of $15 million to the end of this stage, the shortfall will be either
credited against Troymin's share of development costs of a mine or paid in
cash. By arranging financing for Troymin's share of the development costs
of the first mine, Monopros may earn an additional 5% interest, resulting in
ownership by Monopros of 60% and Troymin of 40% in the joint venture.
The Troymin-Monopros Buffalo Hills Diamond joint venture comprises five
strategically located blocks of permits totalling approximately 1.0 million
acres on the Buffalo Head Craton which hosts Alberta's only known
diamondiferous kimberlite pipes. Monopros, as operator of the joint
venture, has commenced a detailed sediment sampling program, concentrating
at this time on the Bison Lake and Trout Mountain blocks which are more
proximal to the known kimberlites. Ground geophysical surveys are also
underway over a number of priority high resolution airborne magnetic
anomalies to define prospective targets for a summer drilling program.
FOR FURTHER INFORMATION, PLEASE CONTACT:
CALGARY VANCOUVER
Jack D. McCleary (403)298-0252 Tom Boychuk (604)681-7610
Fax: (403)262-8786] Fax: (604)689-7645
email: troymin@troymin.com 1-800-557-1545
website: troymin.com
This information has neither been approved nor disapproved by the Alberta
Stock Exchange and the Montreal Exchange.
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