Finally the financing news:
From: newsout@canada-stockwatch.com
Date: Fri, 20 Feb 1998 06:23:39 -0800
Subject: Stockwatch: Consolidated Magna Ventures Ltd - News Release
To: ajanko@erinet.com
NovaGold acquires interest in Mexican property
Consolidated Magna Ventures Ltd CMV
Shares issued 20,187,176 Feb 19 close $0.40
Fri 20 Feb 98 News Release
See Novagold Resources Inc (NRI) News Release
Mr Angus MacIsaac reports
NovaGold Resources has entered into an option agreement with Consolidated
Magna Ventures and its wholly owned subsidiary, Minera del Ceilo Azul SA de
CV, whereby NovaGold has an option to acquire from Magna an interest in the
Koala property covering approximately 12,765 hectares in central Chihuahua
State, Mexico. Consolidated Magna have delineated a coincident lead zinc
geochemical and geophysical anomaly over a strike length of 2.5km. The
geologic setting at Koala is similar to the nearby Santa Eulalia, Naica and
Bismark districts which host 20-40 million tonne base metal deposits. The
Koala property has never been drilled.
The Koala property consists of three claim blocks, Koala I, Koala II, and
Koala III. Magna, through its subsidiary Minera, has an option and joint
venture agreement to acquire up to a 95% interest in the property known as
the Koala I claim, from Minera Delta SA de CV and Xenolith Gold. The Koala
I claim is beneficially owned by Minera Delta and Xenolith and covers
approximately 990 hectares. Magna, through its wholly owned subsidiary,
holds a 100% interest in the Koala II and Koala III claims which surround
the Koala I claim.
Pursuant to the terms of the option agreement between NovaGold and Magna,
Magna has granted NovaGold the right to earn a 51% interest in Koala II and
Koala III and a 25.9% interest in Koala I. Magna has also assigned to
NovaGold its right to acquire a 20% interest in the Koala I claim from
Minera Delta and Xenolith Gold for consideration of C$100,000, which right
NovaGold has exercised.
In consideration of the grant of the option, NovaGold has agreed to issue
Magna 100,000 units of NovaGold, each unit consisting of one common share
and one warrant. The warrant is exercisable at $1.25 per share for a period
of two years. In order to earn its 51% interest in the Koala I and Koala II
claims and further 25.9% in the Koala I claim, NovaGold has agreed to
finance a total of US$3,000,000 for exploration on the Koala claims. The
first phase of exploration is budgeted at US$340,000 and will comprise
geophysical surveys and diamond drilling. NovaGold has also committed to
introducing private placees for working capital for Magna at a minimum of
$150,000 Canadian.
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