Big Valley's QR gold mine agreement amended
Big Valley Resources Inc BV
Shares issued 20,234,310 1999-06-28 close $0.35
Tuesday Jun 29 1999
Mr. Lloyd Tattersall reports
As previously announced, under the terms of a May 14, 1999, purchase agreement (as amended June 15, 1999), Big Valley Resources was granted the right to acquire a 100-per-cent interest in the QR gold mine and related assets from Kinross Gold for $3-million. A condition of the purchase agreement was that Big Valley provide Kinross with confirmation by June 22, 1999, that the purchase proceeds of $3-million were held in trust pending completion of the transaction on of before Oct. 31, 1999.
At the June 22, confirmation date, Big Valley was negotiating with a number of parties interested in financing the purchase of the QR property. Those negotiations are continuing. Accordingly, Big Valley and Kinross have renegotiated the terms of the original purchase agreement. Under the terms of a June 28, 1999, amending agreement, Kinross has extended the completion date of Big Valley's acquisition of the QR property and the payment of the $3-million purchase price to April 30, 2000.
By granting the extension, Kinross has postponed its original plans to decommission the QR property in 1999. As a result, Kinross will incur additional care and maintenance costs of approximately $500,000 up to April 30, 2000. As a condition of the extension, Big Valley will provide Kinross with a non-refundable payment of $300,000 by July 2, 1999, and an additional $200,000 by Oct. 30, 1999, to cover such additional costs up to April 30, 2000. Any funds held by Kinross at the time Big Valley completes its purchase of the QR property will be applied toward the $3-million purchase price. Big Valley intends to complete the necessary financing as soon as possible so that it may begin its 1999 work program on the QR property.
The amending agreement and completion of the acquisition of the QR mine is subject to Alberta Stock Exchange approval. All other terms as contained in the original May 14, 1999, purchase agreement remain unchanged in the June 28, 1999, amending agreement. |
