Buffalo Gold Ltd. has signed the formal agreement with Longview Capital Holdings Ltd. and Longview Capital Partners Ltd. to acquire up to a 90-per-cent interest in the Mt. Kare property in Papua New Guinea. Longview holds an option from Madison Minerals Inc. to acquire up to a 100-per-cent interest of Madison's 90-per-cent interest in the Mt. Kare property.
In order to acquire its interest in the Mt. Kare property, Buffalo will assume Longview's obligations under its agreement with Madison as follows:
Buffalo will complete a preliminary feasibility study by Jan. 4, 2007, and pay Madison, in cash or shares at Madison's election, a total of $500,000 by Oct. 1, 2006, on a quarterly basis to acquire a 49-per-cent interest in Madison Enterprises (PNG) Ltd., a wholly owned subsidiary of Madison that is the holder of the Mt. Kare property;
Buffalo can acquire a further 2-per-cent interest (51 per cent in total) by paying, in cash or shares at Buffalo's election, a further $500,000 on or before Feb. 15, 2007;
Buffalo can acquire a further 14-per-cent interest (65 per cent in total) by completing a bankable final feasibility study by July 4, 2008, at the latest;
after acquiring at least a 51-per-cent interest, Buffalo will have the right to acquire the balance of Madison's interest based on an independent valuation of Madison's remaining interest for cash or shares of Buffalo or a combination of both; and
if Buffalo elects not to acquire Madison's remaining interest, Buffalo and Madison will enter into a joint venture for the further development of Mt. Kare. |
