La Teko closed a deal with Silverado Gold Mines on January 6, 1998.
Here is the full body of the press release:
RYAN LODE OPTION CLOSED DISCOVERY GULCH UPDATE
Vancouver, B.C. January 6, 1998: La Teko Resources Ltd. (LAORF-NASDAQ, LAO-VSE)announces, further to its news release of December 29, 1997, that the option of the Ryan Lode, Fairbanks, Alaska, property to Silverado Gold Mines Ltd. has closed. Initial terms of the option have been modified as follows: On closing, Silverado delivered one million shares of Silverado common stock to La Teko. Silverado is also required to make a payment of US$200,000 on January 30, 1998, US$150,000 of which will be applied to an advance royalty payment on the property, and an additional US$450,000 on February 27, 1998.
All other terms and conditions of the option, whereby Silverado has the right to acquire a 100% interest in the property for US$12 million, will remain the same as previously announced. In addition, Silverado is required to make the following annual payments: US$300,000 due on December 1, 1998; US$400,000 due on December 1, 1999; and US$700,000 due on December 1, 2000. In order to maintain its purchase right, Silverado will also complete minimum expenditures on the Ryan Lode property of US$1 million in each of the first three years of the option term, including the costs of ongoing reclamation, property maintenance and advance royalty payments. Beginning December 1, 2000, Silverado will have 18 months to complete construction of a mill and to place the property into production. Once the mill has been running for 30 days, Silverado will make an additional US$3 million payment to La Teko, with the balance of the US$12 million to be paid six months thereafter. Should the property not proceed into production within 18 months, the option can be extended with annual payments of US$500,000 to La Teko, US$375,000 of which will be credited against the purchase price.
The closing of this deal, in these difficult market conditions, represents a significant achievement both for Silverado and the Company. La Teko will realize considerable savings as a result of this transaction, particularly in the area of ongoing reclamation costs and environmental monitoring related to earlier mining activity at Ryan Lode.
DISCOVERY GULCH
The Company is pleased to report the discovery of a significant gold geochemical anomaly in soils on its Discovery Gulch property in the Circle Mining District, 125 miles northeast of Fairbanks, Alaska. The Circle Mining District, which has a long history of gold placer mining, has produced in excess of 500,000 ounces of gold and has recently seen an increase in exploration activity. A reconnaissance ridge soil sampling program during the summer outlined an area with seven samples ranging in value from 30 to 1125 parts per billion gold (ppb Au) with associated elevated arsenic values. A follow-up program of 78 samples on a 100 foot grid returned 44 samples with values greater than 100 ppb Au with associated elevated arsenic. La Teko has acquired additional claims to solidify its property position in the area. The gold anomaly's strength and character is indicative of a bedrock source. The Company is encouraged by these promising results from this early stage project and will pursue the anomaly's source during the 1998 field season.
La Teko is a gold exploration and development company concentrating its efforts in the prolific Fairbanks Mining District of Alaska.
On behalf of the Board of Directors
"Gerald G. Carlson"
Gerald G. Carlson, Ph.D., P.Eng.
President & CEO
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