Hello BLZBub:
Here is a PALL press release with the details about the joint venture agreements being expanded as I was told at the amalgamation meeting last Friday.
Midas
Prospectors Alliance Corporation - Expansion Of Kamiskotia Joint Venture
With Falconbridge
Toronto, Ontario --
Prospectors Alliance Corporation (PALL - CDN Toronto, 21,116,121
outstanding shares) is pleased to announce the following:
Through its equal co-venturer Explorers Alliance Corporation
("Explorers"), PALL has entered into a Letter of Understanding on
Proposed Business Terms with Falconbridge Limited
("Falconbridge") expanding the scope of its Two-Way Joint Venture
with Falconbridge and amending the terms of its Three-Way Joint
Venture with Falconbridge and Hudson Bay Exploration and
Development Company Limited ("Hudson Bay"), a wholly-owned
subsidiary of Minorco. The amendment to the joint venture
agreements is subject to Falconbridge completing a satisfactory
review of all associated underlying agreements and completion of
the amending joint venture agreements.
The amended agreements will have the effect of expanding the
Two-Way Joint Venture to include PALL/Explorers' base metal
prospects in its Timmins West property group and transfer of some
properties that will be released by Hudson Bay and Falconbridge
from the Three-Way Joint Venture into the Two-Way Joint Venture
Agreement with Falconbridge (50/50).
Falconbridge's interest in expanding the scope of the Two-Way
Joint Venture properties is based on the exploration and new
geological interpretations developed by PALL/Explorers on Timmins
West, which is believed to be underlain by favourable geology,
which may be similar to Kidd type Rhyolites. A recent press
release by the Ontario Geological Survey has confirmed
PALL/Explorers view that the formations in parts of Bristol,
Carscallen and Whitesides Townships are the same age and similar
lithologies to those which host the Kidd Creek deposit, one of
the largest VMS deposits in the world.
Under the terms of the Letter of Understanding on Proposed
Business Terms, PALL/Explorers will be granted an immediate $1
million credit toward its expenditure requirements under the
Two-Way Joint Venture Agreement of November 30, 1997. As a
result, with expenditures to date on the Joint Venture and the
Timmins West credits, PALL will be vested for a 12.5% interest in
the Two-Way Joint Venture properties. They can earn the remainder
of their 50% total interest by spending an additional $4.284
million with minimum expenditures of $750,000 per year on the
Two-Way Joint Venture over the next three years. These
expenditures include a commitment to flying a new Geotem Survey
over Timmins West in the year 2000.
Additionally, Falconbridge will commence a new 5-year exploration
plan for the Kidd Complex, which may include expenditures of up
to $10.2 million between 2000 and 2004. Through amendments to the
Two-Way and Three-Way Joint Venture Agreements, PALL/Explorers
would be carried for 20% of the first $1.0 million in
expenditures in a newly defined area designated as the Focussed
Exploration Zone. Additionally PALL will be carried for the first
$1 million of expenditures on identified targets on the
properties within the Focussed Exploration Zone. Thereafter,
expenditures would be charged based on the relative property
interests of 80% Falconbridge and 20% PALL/Explorers.
PALL will shortly be releasing additional information on their
recent exploration results from the area.
Prospectors Alliance Corporation is a mining exploration company
with significant property holdings in northern Ontario, northern
Quebec and Maine, USA. PALL has previously announced the approval
by shareholders of a reorganisation involving the combining of
their businesses and assets with those of International Larder
Minerals Inc. ("Larder") and three "private" companies, Explorers
Alliance Corporation, 1338756 Ontario Inc. and 1232448 Ontario
Inc. into one corporation through a series of share acquisitions
and amalgamations. After completion of the proposed transaction,
the continuing company will have equity interests in 123 mineral
exploration properties ranging from 10% to 100%. The equity
interests are held in joint venture agreements, farm-in and
farm-out agreements and direct company ownership. The subject
lands are located in areas of Ontario and Quebec underlain by the
Abitibi Greenstone Belt and in Maine, USA. These lands include
over 4,500 mining claim units (16 ha), covering over 72,000
hectares.
For further information, please contact:
Garry R. Stein, Vice- President, Chief Financial Officer and
Secretary, Prospectors Alliance Corporation at (416) 360-5333 |
