NR Int'l Taurus accepts $1-million (U.S.) financing
International Taurus Resources Inc ITS
Shares issued 50,039,143 Jul 10 close $0.13
Tue 11 Jul 2000 News Release
Mr. Robert Blakestad reports
International Taurus has accepted in principle a commitment for $1-million
(U.S.) in financing to be made available for a bulk sample to be undertaken
by the company at its Fenelon gold project in Quebec and to provide working
capital for the company. This financing is to be provided for a two-year
term by a private financial management company and will provide the
financing necessary for the underground development of the project after
the successful completion of the bulk sample. The company will issue a
debenture secured on its interest in Fenelon and bearing interest of 15 per
cent per year, payable quarterly. In addition, the company has agreed to
issue five million common share purchase warrants exercisable at 15 cents
per share for the first year and 20 cents per share during the subsequent
year. Further, the company will pay a royalty, in cash, equivalent to a
3-per-cent net smelter return on 100 per cent of the gold production from
the Fenelon project. Subject to the approval of the Canadian Venture
Exchange, closing is anticipated before the end of July.
As previously announced, the company has concluded an option agreement with
Fairstar Explorations Inc., of Montreal, its joint venture partner on
Fenelon, in terms of which Taurus has agreed to undertake a bulk sample
program at Fenelon and subsequently prepare a feasibility study on the
project, The bulk sample program is under the company's direction and is
100 per cent for the account of Taurus. On completion of the bulk sample
and a feasibility study, Taurus may elect to exercise its option to
increase its share of the Fenelon joint venture to 66.7 per cent (from 27.2
per cent currently) with limited purchase payments to be made from future
production revenues.
Taurus has designed a surface bulk sampling program that will remove about
7100 tonnes of mineralized material from at least two veins to be exposed
at surface after removal of about seven metres of overburden. The estimated
grade of this sample is expected to be more than 30 g/t gold. The bulk
sample will be completed using experienced contractors and the mineralized
material will be treated at a custom milling facility. Planning for this
program is in hand and site work is expected to begin as soon as the
financing closes and contracts are placed. First gold production is
expected within 60 days of the start of the program. If the bulk sample is
successful, the project will proceed through a final feasibility study to
full development as soon as possible.
Taurus commissioned an independent study of the project and believes that
there is excellent potential to develop the deposit as an underground mine
using selective mining techniques. Cyprus Canada discovered the deposit in
1993. Since that time, more than $7-million has been expended on the
property, including more than 180 drill holes. A scoping study developed in
1999 suggests that this project could produce high-grade ores containing
more than 100,000 ounces of gold from mineralization averaging more than 60
g/t gold over a three-year period at cash operating costs of less than $100
(U.S.) per ounce. Exploration potential is excellent, as the deposit is
considered to be open for expansion to depth and along strike.
Robert Blakestad commented: " We are very excited about these developments
and look forward to the successful completion of the bulk-sample program
and the possibility of building the company's first mining operation. If we
are successful, the projected cash flow from this project is expected to
exceed $10-million for the company's account over the first three years of
the operation at current gold prices. This will provide the means to
achieve our goal of becoming a profitable mid-sized mining company focused
on the development of high-grade mineral deposits. We look forward to
working with our partners in the successful completion of this project."
Int'l Taurus accepts $1-million (U.S.) financing |
