US$455,000 private placement; Kazakstan exploration to cease; El Acay agreement
signed
Aranlee Resources Ltd
ARB
Shares issued 18052468
1997-12-03 close $0.16
Thursday Dec 4 1997
Mr Stephen Kay reports
The company has arranged a non-brokered private placement which will provide
funds of approximately US$455,000 (C$650,000). Under the agreed upon terms,
the company will issue 3,250,000 shares at C$0.20. A total of US$142,000 has
already been provided to the company in the form of an advance against the
planned placement. Proceeds will be used for general working capital purposes
and for exploration activities in Argentina. In addition, the company continues to
seek other financing by way of equity placement or through joint venture alliances.
Based on current equity market conditions and the present state of precious metal
prices, the board of directors have deemed it to be in the best interest of the
company to cease all exploration activities in Kazakstan with immediate effect.
Aranlee's joint venture partner, Kazakhstan Minerals, has been informed of this
decision and has agreed to terminate the agreement under the terms of the letter of
intent dated January 31 1997; a formal agreement had not been signed between
the two companies at the time of termination. Although the company still firmly
believes that Kazakstan provides excellent long term prospects for locating world
class mineral deposits, the board feels that in the present market conditions the
company should focus its exploration activities on its nine mineral properties
covering over 500 sq km of prime exploration ground in northwest Argentina
within the emerging precious and base metal belt extending for over 300km
adjacent to the Chilean and Bolivian borders.
In Argentina, the company recently signed the formal agreement with Rio Tinto for
the large El Acay gold-copper property. Rio Tinto is scheduled to commence its
exploration program early in 1998 on a 7km x 4km zone of strong alteration
where the company's 1996 and 1997 sampling program, comprising over 650
rock, soil and stream sediment samples, delineated a 3.5km x 3km area of intense
hydrothermal alteration with multiple gold and copper rock/soil anomalies with
surface values up to 0.5 g/t gold and 0.20% copper. Under the terms of the
formal agreement Rio Tinto can earn a 100% interest in the property, subject to
meeting work expenditure and feasibility study commitments, over a five year
period, with Aranlee retaining the right to buy back up to a 40% interest following
completion by Rio Tinto of a bankable feasibility study.
Also in Argentina, several major companies are reviewing technical data and have
visited, or will be visiting, the Pancho Arias copper-molybdenum porphyry
property and the Centenario gold porphyry property, both of which are immediate
drill targets following an extensive exploration program by Aranlee in 1996 and
1997, including limited drilling at Centenario. Results of recent surface rock
sampling at Pancho Arias have outlined a newly discovered gold zone with values
up to 1.2 g/t gold in the southern part of the property covering approximately
500m by 200m and open to the south. Gold mineralization had not previously
been identified on the property. A more detailed news release will be issued
shortly.
In August 1997 Aranlee received an unsecured loan of US$150,000 from Clarion
Finanz AG of Switzerland to provide short term working capital funds for the
company. Clarion recently agreed to convert this loan to a long term facility. The
company intends to grant a loan bonus of 100,000 shares to Clarion pursuant to
this loan.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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