Detec And Mink Enter Into Major Transaction
Joe,
I presume that this is what you were looking for. Will MKM be back trading this year?
Brian
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6/22/99 -
Detec And Mink Enter Into Major Transaction
DETEC RESOURCES LTD. ("DET-V") MINK INTERNATIONAL
RESOURCES CORP ("MKM-V;MKMRF-L") - Detec And Mink Enter Into
Major Transaction
Jerry A. Minni, Director of Detec Resources Ltd. (the "Company" or "Detec"), is
pleased to announce that it has entered into an option agreement with Mink
International Resources Corp. ("MIR") to acquire a 60% interest in the 50 sq. km.
Northern Niaouleni Property located in the Kangaba Mining District, Republic of Mali, West Africa. Under the terms of the
agreement Detec will be required to provide $1,000,000 to purchase two gravity type concentrators, working capital, and to
conduct bulk sampling operations on the Property, leading to full production. Upon Detec having recovered its expenditures, its
interest will be reduced to 51%. MIR has on site a number of heavy equipment and ancillary facilities amounting to over $2
million that will be used for the planned operations. Full production is expected to follow immediately after the bulk sampling
programme.
There are three known eluvial (weathered rock in place) gold deposits on the Property and five paleo (ancient stream) and
alluvial placer deposits. All of these workings, from which local inhabitants have been gainfully recovering gold for centuries,s
extend for several kilometres. Limited work by MIR has already delineated drill indicated and probable reserves in two of the
eluvial deposits. So far, the Libre Plateau and South Niaouleni zones have some 4,500,000 tonnes of reserves with grades
ranging from less than a gram to 6.85 gpt and containing over 235,000 oz gold. On the other hand, the paleo and alluvial
placers have estimated reserves of over 35 million cubic meters of gold-bearing gravel with grades estimated at 0.35 grams per
cubic metre.
There are similar deposits at the Sadiola and Syama Mines, also in Mali, that are respectively being operated by Anglo
American and Rand Gold, both of South Africa. These two mines are open pit operations that employ VAT leaching and CIP
processing methods. It was reported that the Sadiola Mine now produces over 500,000 oz of gold per year at a cost of $138
per oz. Before reaching its present depths of over 100 meters, the Syama Open Pit Mine (some 190,000 oz/year capacity)
was reported to have produced gold at $178 per ounce. The planned operations at Northern Niaouleni will employ hydraulic
mining and gravity type concentrators with expected production costs amounting to $100-$130 per ounce.
To fund the project, the Company will complete a public offering in the amount of 3,000,000 units at an estimated offering price
of $0.50 per unit. Each unit will be comprised of one common share and a transferable share purchase warrant. One warrant
will entitle the holder to acquire an additional share of the Company at $0.55 per share for a six month period from the offering
day. Canaccord Capital Corporation will act as agent in connection with the offering. The agent will receive a 10% commission
and 750,000 agent's warrants.
Completion of the major transaction is subject to regulatory acceptance and shareholder approval.
At the upcoming shareholders' meeting, Messrs. Orlando de la Cuesta, John Folinsbee and George Sookochoff will be
appointed directors of the Company. Orlando de la Cuesta has over 35 years experience in the mining industry and has
managed gold and base metal exploration, development and mining projects in Canada, the United States, Africa, central and
South America and the Philippines. John Folinsbee is a mining consultant with over 45 years experience in the mining business.
He has held senior management positions with major mining companies and consulting firms. George Sookochoff is a computer
consultant specializing in the development and maintenance of G.I.S. database systems used in mineral operations. He has
provided computer consulting services to the mining industry since 1983. TEL: (604) 683-0343
Jerry A. Minni, Director FAX: (604) 683-4499
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