NEWS NEWS NEWS
Cambridge to earn interest in Sanfred's Utikuma Lake permits
Sanfred Resources Ltd SND
Shares issued 5591288
Close $0.27
Tuesday Oct 7 1997
Mr Robert McMorran reports
Cambridge has entered into an agreement whereby Sanfred has granted
Cambridge an option to earn a 50% undivided interest in Sanfred's 100% owned, 300,000-acre (approximately) Alberta exploration permits east of Utikuma Lake, within the Buffalo Head Craton.
Pursuant to a previously signed agreement with the original property owner, there is a 2% gross overriding royalty on diamond production and a 1.5% nsr on other mineral production on the property. The agreement provides that the GOR and the nsr may be repurchased from the original property owner for $2 million and $1 million respectively.
In order to earn its 50% interest, Cambridge must make a cash payment and issue 50,000 shares to Sanfred on closing and issue a further 150,000 shares to Sanfred over the next two years. In addition, Cambridge must incur exploration expenditures of $1.00 per acre on the property within one year of closing and cumulatively, $2.50 per acre ($750,000 in total) within two years of closing.
Further, Cambridge must also complete an airborne magnetic survey of the property within 90 days of the closing, with the cost of the survey and its interpretation to be included as part of the first year's expenditure requirement. Cambridge will be operator of the exploration program.
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Thanks for your shareholder support.
Rich :) |
