NEWS NEWS NEWS!!!!
SANFRED RESOURCES LTD.
January 7, 1998
V.SND on Vancouver Stock Exchange
News Release #6
itribe.net
800-595-9939-North American Toll Free.
NEW PROPERTY ACQUISITIONS:
Claims Adjoining Cross Lake minerals Discovery, Sheraton Township,
Timmins Area, Ontario, Canada.
The Company is pleased to announce the signing of letters of intents on two claim blocks adjoining the Cross Lake Mineral Property in Sheraton Township, Porcupine Mining District, Ontario, Canada.
The propertied located 44 kilometers east of Timmins, Ontario are comprised of two non-contiguous mining blocks. The Kasba Creek Property is contiguous to and SE of the Cross Lake VMS Discovery Property and is comprised of 15 units. The Sheraton Township Property is contiguous to the eastern border within 1 mile of the Cross Lake
VMS Discovery hole and is comprised of 56 units.
Under the terms of the letter of intent the property payments, work commitments and issuance of shares as follows:
Kasba Creek Property-100% Option, 15 Units
-Cash Payment of $150,000.00 over two years
-Work Commitment of $120,000.00 over three years
-Share Issuance of 150,000 shrs. in three blocks of 50,000shrs.
The vendor retains a 3% NSR with an optional buy back of 1.5% NSR for $1,500,000.00
Sheraton Township Property-100% Option, 56 Units.
-Cash Payment of $175,000.00 over two years.
-Work Commitment of $400,000.00 over three years.
-Share Issuance of 200,000 shrs. in four blocks of 50,000 shrs.
The vendor retains a 3% NSR with an optional buy back of 1.5% NSR for $1,500,000.00
This Significant Polymetallic Discovery consisting of copper, zinc, lead, silver and gold is the most significant base metals discovery in Ontario, Canada since the Texas Gulf discovery in 1964 ( Know now as KIDD CREEK owned by Falconbridge)
These properties will compliment and extend the company's current portfolio of properties in the Beniah Lake Region of the Northwest Territories and the Buffalo Hill Region of Alberta where an Airborne Geophysical survey is in progress.
A finder's fee consisting of 50,000 common shares will be paid on these new acquisitions.
The company has arranged a private placement of $320,000.00 with several investors to purchase 1,000,000 Special Warrants at a price of $0.32 per Special Warrants.
Each Special Warrant is convertible into a unit consisting of a share and a two year warrant to purchase an additional share at a price of $0.40 in the first year and at a price of $0.46 in the second year.
The company has agreed to prepare and obtain regulatory acceptance to a prospectus qualifying the distribution of the units upon the conversion of Special Warrants. In the event the company fails to obtain this regulation with 120 days of the closing date of the private placement, each placee will be issued 1.1 units for each Special Warrant.
A finder's fee of 10% will be paid in cash on this private placement in accordance with VSE Exchange policy. Any unit issued prior to the acceptance of the prospectus will be subject to one year hold period from the date of payment.
The private placement funds will be used to pay the initial option payments and fulfill the work commitments on these new properties.
All transactions in release are subject to regulatory approval.
On Behalf Of the Board
SANFRED RESOURCES LTD.
Per: Don Farrell. |
