!!!NEWS RELEASE!!!
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
Major General Resources Ltdÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ MGJ
Shares issued 33,186,119ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Jan 29 close $0.35
Fri 30 Jan 98ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Acquisition
The VSE has accepted for filing an option agreement dated December 23 1997,
between Major General Resources Ltd (the company) and Rio Algom Exploration
Incÿ wherebyÿ Rioÿ mayÿ acquireÿ fromÿ theÿ companyÿ aÿ 50%ÿÿ interestÿÿ in
approximatelyÿ 475ÿ claimÿ units (the property) known as the Green Bay base
metal properties, in Newfoundland. Rio may earn its 50% interest byÿ making
exploration expenditures of $2,000,000 and cash payments totalling $285,000
over a four year period. Rio may earn an additionalÿ 10%ÿ interestÿ (forÿ a
totalÿ ofÿ 60%ÿ interest)ÿ inÿ theÿ propertyÿ withÿ a further $1,000,000 in
exploration expenditures and $100,000 in cash payments toÿ theÿ companyÿ in
the fifth year.
Once Rio has vested at 50% or 60% equity, a joint ventureÿ willÿ beÿ formed
withÿ bothÿ parties making pro rata expenditures. If the company elects not
to contribute, it will dilute via a standard dilutionÿ clause.ÿ Shouldÿ the
company be diluted to 10% or less, the property will be subject to a 2% nsr
in favour of the company. Rio will have the option to purchaseÿ 1%ÿ ofÿ the
nsr for $1,000,000.
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