Looks like Debeers thinks the AK is going to be commercial. PR tonight:
Mountain Province and Camphor sell 51% overriding royalty to Monopros/De
Beers
Mountain Province Mining Inc MPV
Shares issued 42,444,760 Sep 10 close $2.39
Fri 10 Sept 99 News Release
Mr. Jan Vandersande reports
Monopros Limited, a wholly owned subsidiary of De Beers Consolidated Mines
Limited, has elected to purchase, for 2.55-million, a 51-per-cent interest
in a 3-per-cent gross overriding royalty against production from the AK/CJ
diamond property in the Northwest Territories. The royalty is presently
held by Mountain Province Mining (as to 90 per cent) and by Camphor
Ventures Inc. (as to 10 per cent).
Monopros negotiated an option to purchase a 51-per-cent interest in the
royalty at the time it entered into the AK/CJ joint venture with the MP
Group and Glenmore Highlands Inc.
Completion of the transfer of the royalty is expected on or about Nov. 25,
1999. The company will receive 90 per cent of the $2.55-million (Canadian)
payment (being $2,295,000 (Canadian)), and Camphor will re receive the
remaining 10 per cent (being $225,000 (Canadian)).
Upon completion, Monopros will hold an undivided 51-per-cent interest in
the royalty, the company will hold an undivided 44.1-per-cent interest in
the royalty, and Camphor will hold an undivided 4.9-per-cent interest in
the royalty. Upon Monopros having earned a 51-per-cent interest in the
property in accordance with the requirements of the joint venture
agreement, the royalty will be cancelled for no further consideration.
The company is very pleased with this decision by Monopros.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
IMHO Debeers would not pay out $2.55mm if there was no return.
cheers |
