Possible JV with Falconbridge Nickel--Are things looking up?!? Falconbridge intends to drill a hole at Kidd Creek by March 31 as part of this deal.
fin-info.com
1998-01-12 (provided courtesy of Canadian Corporate News)
Regal Goldfields Limited Company Announcement
TORONTO, ONTARIO--Regal Goldfields Limited (CDN - REGL) announces
that it has signed a letter of intent with Falconbridge Limited
under which Falconbridge has the right to earn a 70 percent
interest in Regal?s claims in Kidd Township. Regal currently has
a 100 percent interest in the property which consists of 20 claims
located approximately 16 miles north of the City of Timmins in
Northeastern Ontario. These claims are located approximately
6,600 feet to the west of the Kidd Creek Mine and 2,600 feet south
west of the Chance base metal deposit, both owned by Falconbridge.
To earn the 70 percent interest under the terms of the proposed
agreement, which is subject to formal documentation, Falconbridge
must make staged cash payments totalling $80,000 to Regal and
incur expenditures on the property of $700,000 by the fifth
anniversary of the agreement with minimum annual expenditures of
$50,000. The staged cash payments are: $10,000 upon signing and
upon the first anniversary, and $20,000 on each of the second,
third and fourth anniversaries of the agreement. Falconbridge is
not obliged to make any payments or incur any expenditures other
than the $10,000 upon signing. However, if the payments are not
made or the expenditures not incurred, Falconbridge forfeits its
right to earn any interest in the property. It is Falconbridge?s
current intent to drill a hole on the property before March 31,
1998.
If Falconbridge earns a 70 percent interest in the property, a
joint venture will be formed with Falconbridge holding a 70
percent interest and Regal a 30 percent interest.
Regal presently has 10,563,643 common shares and 2,000,000 special
warrants outstanding. The special warrants are exercisable into
2,000,000 common shares and 1,000,000 common share purchase
warrants within six business days after a receipt is issued by the
Ontario Securities Commission for a final prospectus qualifying
such common shares and warrants, or on June 23, 1999, whichever is
earlier. Each common share purchase warrant entitles the holder
to acquire one common share in the capital of Regal at an exercise
price of $0.20 per common share at any time on or before December
23, 1999.
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Regal Goldfields Limited
Richard Brissenden
President
(416) - 364-1130
(416) - 364-6745 (FAX) |
