June 16, 1999
Eaglecrest Explorations Ltd. 12G #82-603
NEWS RELEASE #99-12 EEL-VSE
Gold-Bearing Conglomerate Acquired
Eaglecrest Explorations Ltd. ("Eaglecrest") reported today that the company has expanded its holdings on the San Simon plateau gold prospect in northeastern Bolivia.
The company said its new acquisition of 12 mineral concessions covering 13,851 hectares takes in a highly prospective 12 km. long conglomerate zone that is located 10 km. north of the company's principal stockwork target along the 6 km. Paititi/Buritin trend.
The acquisition was made on the advice of Eaglecrest's geological team who have observed visible gold in the matrix of the conglomerate. In addition, the conglomerate zone is reported to carry gold in the quartz pebbles and as well has a uranium geochemical anomaly and a radiometric anomaly.
The company intends to initiate an immediate mapping and sampling program on the zone to establish possible drill targets for inclusion in a future drill program.
To acquire an option to earn a 100 percent interest in the concessions, the company must issue a total of 200,000 shares, of which 150,000 will be issued upon regulatory approval of the acquisition and 50,000 will be issued upon confirmation of final title to the concessions. In addition, the company must perform US$100,000 in work on the concessions in the first year and $US200,000 in the second year, and pay the vendor US$100,000 two years after acquisition. The property is subject to a 3% net smelter return in favour of the vendor, of which the company may purchase 1% for US$500,000 and an additional 1% for US$1,000,000. Advance royalty payments of US$50,000 annually will be payable starting in the third year.
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On behalf of the Board of Directors,
"Gary Cope"
President |
