Any delay with El Morro may increase the likelihood of NGD buying out AME.But just surmizing as there is no chance of AME buying out NGD and my feeling is that NGD principals will not want to share.
New Gold signs agreements with Abacus, Teck
2008-03-25 09:13 ET - News Release
Mr. Cliff Davis reports
NEW GOLD INC., ABACUS MINING AND EXPLORATION CORP. AND TECK COMINCO LIMITED SIGN DEFINITIVE AGREEMENTS RESPECTING AFTON-AJAX CU-AU DISTRICT
New Gold Inc. has signed two definitive agreements, one with Abacus Mining and Exploration Corp. and the other with Abacus and Teck Cominco Ltd., addressing the co-operative development of their respective assets in the Afton-Ajax copper-gold district. The two agreements were the subject of letters of intent, the particulars of which were described in Stockwatch on Oct. 30, 2007.
The three-party agreement is intended to ensure that New Gold and Abacus are able to freely develop their assets in the area of the New Afton project. This agreement will ensure that Abacus maintains the rights of access previously granted to it by Teck and provides Abacus with shared use of New Gold's water pipeline in the event that it develops a new milling operation. New Gold will be provided access from the Trans-Canada Highway to its New Afton operations over a small portion of the land, which Abacus is purchasing from Teck around the old Afton mill building.
The two-party agreement is intended to ensure that any economic mineralization, within and surrounding the past-producing Ajax pits, is explored, delineated and developed in the most effective manner. As a result, the two-party agreement is intended to grant Abacus an option to explore for and potentially develop mineralization in the area surrounding Abacus's Ajax mineral claims, which overly the past-producing Ajax pits. Under this agreement, Abacus must spend $2.5-million over two years over a portion of New Gold's mineral claims surrounding the Ajax pits and complete a preliminary economic study within six months following the two-year period. If economic mineralization is established in the area between the pits, it will be developed as a joint venture between the two companies. In the event of an open-pit operation, the interests will be 60:40, in favour of Abacus, which will be the operator. In the event of an underground operation, the interests will be 60:40 in favour of New Gold, which will be the operator. |
