Sabina Resources Limited - Developments update
Shares Issued: 8,964,004
TORONTO, Sept. 3 /CNW/ - SABINA RESOURCES LIMITED (TSX-V:SBB) is pleased
to announce that its principal activity currently remains drilling on the
Redaurum property located in the Red Lake Mining District of Ontario. The
Redaurum Property is under option to Placer Dome Canada (CLA) Limited (Placer
Dome), a subsidiary of Placer Dome Inc. (TSX:PDG). Sabina and Placer Dome are
in the process of final completion of the terms of the agreement.
As reported previously, drilling has started on this property, with 4
holes having been drilled to-date, in close proximity to the boundary with the
Madsen Property. No information has been received regarding this drilling
pending completion of the final agreement, which is expected shortly.
Placer Dome has the right to acquire an initial 50% interest in Sabina's
80% owned Redaurum property (the remaining 20% interest is owned by Claude
Resources Inc. (TSX:CRJ)) by paying to Sabina $100,000 cash and spending
$2,000,000 in exploration over a four year period; including payment of
$25,000 upon signing (received) and performing a minimum of $250,000 in
exploration in the first year. Upon Placer earning its initial interest in the
property, Sabina shall transfer a 5% interest to Claude in return for Claude
having waived its first right of refusal in favour of Placer Dome. Within 60
days of Notice of Formation of the Joint Venture, Sabina may elect to have
Placer Dome fund all further expenditures on the Redaurum property up to
production in return for an additional 5% interest leaving Sabina a 20%
carried interest.
The Company is not aware of any material changes that have affected the
recent market activity, although the Company is continuing to seek additional
properties for acquisition.
ON BEHALF OF THE BOARD OF DIRECTORS
William Cummins
President
The statements made in this Press Release may contain forward looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's expectations and
projections.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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For further information: please contact: Ewan Downie, Chairman,
Phone: (807) 346-1668, Fax: (807) 473-1977; Bill Cummins, President,
Phone: (519) 438-4555, Fax: (519) 438-9666
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