Ashton Mining of Canada Inc - News Release
Ashton acquires Kikerk Lake option from Caledonia
Ashton Mining of Canada Inc ACA
Shares issued 29,249,415 2000-09-12 close $0.77
Wednesday Sep 13 2000 News Release
Also Northern Empire Minerals Ltd (NEM)
Also Caledonia Mining Corporation (CAL)
Mr. Robert Boyd of Ashton Mining of Canada reports
Ashton Mining, through its wholly owned subsidiary Ashton Mining (Northwest Territories) Ltd., has entered into an option agreement with Caledonia Mining Corporation to earn up to a 59.5-per-cent interest in 15 mineral claims (approximately 15,400 hectares) in the vicinity of Kikerk Lake in Nunavut.
Current participating interests in the Kikerk Lake property are Caledonia 70 per cent and Northern Empire Minerals Ltd. 30 per cent. Previous sampling programs carried out by Caledonia and Northern Empire have identified a highly anomalous discrete indicator mineral train suggesting proximity to a kimberlite source. A program of heavy mineral sampling has commenced in an effort to locate the source of the indicator mineral train. If results from this program warrant, a drill program will be planned for the spring of 2001.
Under the agreement with Caledonia, Ashton assumes operatorship and is entitled to earn a 52.5-per-cent interest in the property from Caledonia by spending an initial $100,000 by March 31, 2001, a further $150,000 by May 31, 2002, and a final $500,000 not later than May 31, 2003. In addition, Ashton is entitled to increase its interest to 59.5 per cent by carrying Caledonia up to and including the completion of a feasibility study. Before completion of a feasibility study and under certain circumstances, Caledonia has the right to sell its interest to Ashton at fair market value. Following completion of a feasibility study and before a production decision is made, Caledonia can elect to retain an interest not exceeding 5 per cent with project development costs to be paid by Ashton and subsequently recovered out of proceeds of production.
Northern Empire has asserted a right of first refusal over the interest granted by Caledonia to Ashton under the option agreement. Caledonia denies that any right of this kind exists and has notified Northern Empire accordingly. Ashton and Caledonia have invited Northern Empire to participate, in proportion to its interest, in current and future programs on the Kikerk Lake property. |
