To Don,
****NEWS RELEASE****GLS and AMS.
Adamas Resources Corp -
Private placement; Hydra-Hercules
(Nevada) gold project JV
Adamas Resources
Corp
AMS
Shares issued 7617989
1997-09-23 close
$0.28
Wednesday Sep 24
1997
Mr Stephen Doppler reports
The company has negotiated a private
placement for 313,095 units at $0.21. Each
unit will be comprised of one share and one
two year warrant, exercisable at $0.21 in the
first year and at $0.26 in the second year.
Upon closing, the placement will net the
company $65,750; proceeds will be allocated
to general working capital and reducing
outstanding liabilities. There is no finder's fee
payable in regards to this transaction.
The company has withdrawn a submission to
the VSE concerning an investor relations and
corporate financial services contract with
Venture Financial Services of Pompano Beach,
Florida, announced earlier this year.
GLS and AMS JV.
Mr Doppler also reports
The company has entered into an agreement
with GLS Global Assets Ltd whereby GLS can
acquire a 51% interest in the company's
Hydra-Hercules gold project in the Como
mining district, Lyons County, Nevada.
The project, at the northern end of the Walker
Lane Trend, hosts epithermal gold and silver
mineralization within two separate northerly
trending structures. Since 1984, over US$2
million worth of exploration work (including
over 34,000 ft of core and RCV drilling) has
been undertaken by prior optionees, including
Asamera, Horizon Gold, St Joe Minerals and
Phelps Dodge. A geological resource amenable
to open pit mining methods has been estimated
at between 170,000 and 213,000 oz gold with
over 1.5 million oz silver. The host structures,
each approximately 9,000 ft in length, remain
open along strike and down dip. Potential for
the project to host a million plus oz gold
deposit is excellent.
GLS will have until December 31 1997 to
complete a due diligence evaluation of the
project. Concurrent with and complementing
GLS' evaluation program, the company will be
conducting its own exploration work on the
project, budgeted at $25,000 to $50,000 and
focusing on the numerous as yet untested gold
anomalies and geophysical targets previously
identified on the project grounds.
Upon favourable results, GLS can elect to
exercise its option and enter into a working
interest joint venture by paying US$40,000 by
March 1998 making advance annual royalty
payments of US$60,000 and US$70,000 in the
first and second years of the joint venture,
respectively, and be expending a minimum of
US$200,000 on exploration during the first two
years, GLS will also be responsible for paying
all BLM fees and local taxes. The project is
subject to a 5% nsr (capped at US$4.5 million)
payable to the underlying owners.
Should GLS and the company enter into a
formal joint venture agreement, a finder's fee
would be payable to Gold Ridge Investment
Corp in regards to the GLS transactions.
(c) Copyright 1997 Canjex Publishing Ltd.
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