Alamos Minerals Ltd -
Alamos and Laminco sign San Antonio option agreement
Alamos Minerals Ltd
AAS
Shares issued 14,878,030
1999-06-11 close $0.2
Monday Jun 14 1999
Also Laminco Resources Inc (LMR)
Mr. Chester Millar and Mr. Ed Morrow report
Alamos Minerals and Laminco Resources have entered into an option agreement whereby Alamos can
earn up to 70-per-cent interest in Laminco's San Antonio gold property in Mexico.
Under the terms of the agreement, Alamos will invest $100,000 (U.S.) in private placement for 2.1
million units of Laminco at a price of seven cents per unit. Each unit will consist of one common
Laminco share and one warrant, each warrant exercisable to purchase one additional share for seven cents
in the first year and eight cents in the second year. Alamos can earn a 35-per-cent interest in the property
by successfully completing a production scale metallurgical test on San Antonio ores and a further 35 per
cent by spending a total of $4-million (U.S.) in developing the property over the next four and a half
years. A joint venture will be formed when Alamos has earned its 70-per-cent interest in the property,
with Alamos as the operator.
The San Antonio property is approximately 140 kilometres east-southeast of Hermosillo, Sonora, in
Mexico. It has been controlled by Laminco since 1993, and over 240 drill holes have established a
resource of about one million ounces in all categories. Considerable upside potential has been
demonstrated by geophysics, geological ground work and drilling. Placer Dome's subsidiary, Minera
Can Mex SA de CV, is actively exploring portions of adjacent areas under a 1996 agreement with
Laminco.
The property has an existing infrastructure, including road access, water and power. There is a readily
available local labour force in the surrounding area. These advantages will allow Alamos to rapidly and
economically proceed with the planned testing, which may be expanded into production, if results
warrant.
Laminco's president, Ed Morrow says, "Laminco is very pleased to have Alamos and its chairman,
Chester Millar, as partners on the San Antonio property. The experience and track record of Chester and
his team are what Laminco has been seeking to help us place the property into production. We have
always believed in the low-cost potential of the San Antonio mineralization and this is truly Alamos'
expertise."
The agreement is subject to regulatory approvals. |
