Cdn Golden et al. revises Night Hawk option terms
Cross Lake Minerals Ltd CRN
Shares issued 35,182,665 May 2 close $0.095
Fri 3 May 2002 News Release
See Canadian Golden Dragon Resources Ltd (CGG) News Release
Dr. Elliot Strashin of Cdn Golden Dragon reports
NIGHT HAWK LAKE JOINT VENTURE PROPERTY OPTION REVISED
Canadian Golden Dragon Resources (Golden Dragon), East West Resource and
Cross Lake Minerals advise that, subject to all necessary approvals and
signing of a formal agreement, the business terms as reported in Stockwatch
Oct. 17, 2001, with respect to the option of the Night Hawk Lake
zinc-copper-silver property have been revised. The property is held on a
20-40-40 basis by Golden Dragon, East West and Cross Lake, with Cross Lake
as the operator.
Instead of earning up to a 70-per-cent interest, Falconbridge may now earn
up to a 65-per-cent interest as follows. As previously announced, a
50-per-cent interest in the property may be earned by making property
exploration expenditures of $2,975,000 over six years. However,
Falconbridge may now earn an additional 15-per-cent interest, instead of
20-per-cent, by completing prefeasibility and feasibility studies. The
objective would be to commence such work as soon as possible and to sustain
it on a continuous basis until its completion. If Falconbridge elects to
exercise the additional option and wishes to delay the start of or suspend
the work on the prefeasibility or feasibility studies, Falconbridge will
make $100,000 annual advanced royalty payments until commencement or
resumption of said work. The advanced royalty payments are to be recouped
from 90 per cent of the partners' share of revenues from production.
Upon a production decision being made, Falconbridge will make a $1-million
cash payment (production decision bonus) to the partners which will have
nine months to raise their share of preproduction costs. Rather than
financing 100 per cent of such costs as previously announced, Falconbridge
will allow the partners, at the partners' option, to finance their share of
costs second. That is, the partners will be required to finance their 35
per cent only after Falconbridge has spent its 65-per-cent share. In this
event, Falconbridge will recoup any ARP and the production decision bonus,
plus interest, from 95 per cent of the partners' share of revenues from
production. The partners believe that this second-in financing option will
be a significant advantage when the time comes to seek its share of
financing.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
