New Diamond Play in Alberta (ASE:AGS). Here is the news release:
Agau Acquires Large Interest in Alberta Diamond Property
EDMONTON, ALBERTA--AGAU RESOURCES, INC. ("Agau") and 695491
ALBERTA LTD. ("Vendor") announce that on January 12, 1998 a letter
of intent was entered into between Agau and the Vendor whereby
Agau will purchase mineral permits on approximately 21,000 acres
and enter into an option agreement for mineral permits on nine
townships, approximately 200,000 acres, all in the Spirit Ridge of
the Peace River District. The property is located approximately
25 miles northwest of the Monopros Mountain Lake Kimberlite Pipe
and is in an area of intense diamond exploration activity.
An analysis of satellite side radar imagery, shallow, intermediate
and deep aeromagnetics and airborne infrared photographs has
identified several potential cluster targets for further
delineation. In addition, stream sediments have been recovered
and are undergoing further detailed analysis. Based on the
information gained, a magnetometer ground crew is being mobilized
to select suitable drill sites. Also, a drill crew is on standby
and will commence operations when the actual drill sites have been
determined, expected to be within the next month.
Initial payment for the purchase and option is $15,000 plus
reimbursement of exploration expenses to a maximum of $20,000.
Title to each additional township can be acquired for $10,000 cash
or 15,000 shares at a deemed value of $0.90 per share during the
first year of the option and for $15,000 cash or 20,000 shares at
a deemed value of $0.90 per share during year two. In addition, a
cash payment of $15,000 is required at the first anniversary of
the agreement to extend the option for a second year. Commercial
production is subject to a 3 percent net smelter return or similar
royalty. The transaction is subject to regulatory approval.
Agau is expected to expend approximately $450,000 for exploration
of the Spirit Ridge Area properties during the current year,
subject to raising the required funding.
Agau is a Canadian mineral exploration company based in Edmonton
with a listing on The Alberta Stock Exchange. Agau is building an
inventory of high potential exploration prospects and considers
the Spirit Ridge Area property to be a strategic acquisition in
its ongoing development.
Mr. Kenneth Richardson, a director of Agau, is also a director and
one sixth owner of the Vendor. The Richardson family holds the
balance of the Vendor's ownership.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Agau Resources, Inc.
Einar Myrholm
President
(403) 413-9392
(403) 496-9307 (FAX)
agau@planet.eon.net
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED
THE INFORMATION CONTAINED HEREIN. |
