Hi Jim, Silverado has not offered to buy La Teko, only the Ryan Lode property. Here is the release:
Wednesday July 16 9:19 AM EDT
Company Press Release
La Teko Announces of Sale of Ryan Lode Property for US$12 Million
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 16, 1997--La Teko Resources Lt (VSE:LAO., NASDAQ:LAORF.)) La Teko Resources Ltd. (``La Teko'') announces that it has reached agreement with Silverado Gold Mines Ltd. (``Silverado'') pursuant to which Silverado has the right to acquire a 100% interest in its Ryan Lode property in Fairbanks, Alaska, for US$12 million.
In order to maintain its right to purchase the Ryan Lode, Silverado will be required to make payments to La Teko over a five year time frame with an initial payment of US$500,000 to be made after a 60 day due diligence period. Annual payments thereafter will include US$300,000 after year one, US$400,000 after year two and US$700,000 after year three.
In order to maintain its purchase right, Silverado will also complete minimum expenditures on the Ryan Lode property of US$1 million in each of the three years, including the costs of ongoing reclamation, property maintenance and advance royalty payments. After the third year, Silverado will have 18 months to complete construction and to place the property into production.
Once the mill has been running for 30 days, Silverado will make an additional US$3 million payment to La Teko, with the balance of the US$12 million to be paid six months thereafter. Should the property not proceed into production within 18 months, the purchase can be extended with annual payments of US$500,000 to La Teko, US$375,000 of which will be credited against the purchase price. This agreement is made subject to approval of the Vancouver Stock Exchange.
Gerald Carlson, President of La Teko, stated ``This sale represents an excellent strategic move for La Teko, in that it provides short term cash while relieving the Company of ongoing environmental monitoring and reclamation costs as well as sizable advance royalty payments.''
The sale of Ryan Lode will allow La Teko to focus attention on its promising and still growing True North joint venture with Newmont Exploration Limited (``Newmont'') and other acquisition opportunities. Newmont, the True North joint venture operator, is continuing exploration to expand the gold resource from the recently announced mineral inventory of 18,208,000 tons with an average grade of 0.072 oz. Au/ton, for total contained gold of 1,313,900 ounces.
La Teko also announces that, subject to regulatory approval, it has granted incentive stock options to a director to purchase up to 100,000 common shares of the Company at an exercise price of US$1.50 per share for a period of five years from the date of vesting. The incentive options vest as to 25,000 options immediately and a further 25,000 options in each of the following three years.
La Teko is a gold exploration and development company concentrating its efforts in the prolific Fairbanks Mining District of Alaska. The
Company has no debt and $1.5 million in working capital.
On behalf of the Board of Directors
Gerald G. Carlson, President
Note to Editors: The Vancouver Stock Exchange neither approves nor disapproves of the information contained herein. |
