Pacific North West enters agreement with Kaymin
Pacific North West Capital Corp PFN
Shares issued 16,175,375 Jun 26 close $0.89
Wed 27 Jun 2001 News Release
Also New Millennium Metals Corporation (PGM)
Mr. Andrew Barr reports
Pacific North West Capital (PFN) and New Millennium Metals (PGM) have
executed an agreement with Kaymin Resources Limited, a subsidiary of Anglo
American Platinum Corporation Limited, whereby Kaymin may earn up to a
65-per-cent interest in the Agnew Lake platinum group metal property
located approximately 60 kilometres west of Sudbury, Ont. Anglo Platinum is
the world's largest producer of platinum group metals.
Under the terms of the agreement, Kaymin may earn a 49.5-per-cent interest
in the property by incurring $6-million in exploration and development
expenditures by Dec. 31, 2004, including the reimbursement of PFN for its
previous expenditures on the property of approximately $226,000. Kaymin
will also make cash payments of $200,000 to both PFN and PGM on the
effective date of the agreement, which is expected to occur on or about
June 29, 2001. Kaymin has 30 days following the effective date of the
agreement to elect to finance a $1.18-million exploration program in 2001.
The program will be under the direction of PFN as project operator.
After earning a 49.5-per-cent interest Kaymin may increase its interest to
57 per cent by entering into a joint venture with PFN and PGM, and
completing a feasibility study acceptable to reputable banking
institutions. Kaymin may subsequently increase its interest to 60 per cent
by arranging for or financing all costs of development and construction to
commercial production. PFN and PGM are required to repay their portions of
these costs from a percentage of their share of production from the
project. At the commencement of commercial production and assuming PFN
earns its full interest in the property as described below, PGM and PFN
would each retain a 19.5-per-cent participating interest and the original
property vendors would retain a 1-per-cent carried interest, and up to a
2-per-cent net smelter royalty. Kaymin also has the right to purchase a
further 5-per-cent interest in the initial or subsequent mining operations
developed on the Agnew Lake property based upon the net present value of
the operations according to their respective feasibility studies.
Under the terms of an option agreement between PFN and PGM (as reported in
Stockwatch Aug. 31, 2000), PFN has the right to earn 50 per cent of PGM's
interest in the Agnew Lake property by completion of $500,000 in work by
Dec. 20, 2004, and payment to PGM of $200,000 in cash plus 50,000 shares of
PFN. To date, the 50,000 shares plus $65,000 in cash have been paid to PGM
by PFN. The PFN/PGM option agreement provides that to the extent a third
party, such as Kaymin, finances PFN's $500,000 work commitment on the
property, PFN may exercise its option on the property by paying to PGM an
equivalent value in PFN shares in lieu of its work commitment.
Located approximately 60 kilometres west of Sudbury, Ont., the
6,500-hectare Agnew Lake property covers most of the layered
Shakespeare-Dunlop mafic intrusion, which is of a similar age and
composition to that of the River Valley-layered intrusion situated 60
kilometres east of Sudbury, which PFN and Kaymin are exploring for platinum
group metals together (see below). The Agnew Lake intrusion is known to
contain significant platinum group metal values close to its contact with
adjacent older rocks. Geological and geophysical surveys on the Agnew Lake
property were completed in 2000 under the direction of PFN as project
operator. The anticipated $1.18-million exploration program which Kaymin
may elect to finance in 2001 includes a substantial provision for diamond
drilling in addition to geological, geophysical and sampling programs.
River Valley phase 4 drill program
The phase 4 drill program (greater than 11,000 metres) on the River Valley
project is expected to be completed by early July. More than 40 holes have
been completed in the Dana Lake and Lismer's Ridge areas since drilling
resumed May 14, 2001. PFN will report assay results as they become
available. The River Valley project is financed by Kaymin pursuant to a
farm-in agreement entered into by PFN and Kaymin in July, 1999.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com |
