Canada Stockwatch
Shortcuts Menu Symbols Bulletins Company Participant Insiders
AccountStatus NewWindow
Consolidated Magna Ventures Ltd -
NovaGold acquires interest in Mexican
property
Consolidated Magna Ventures Ltd
CMV
Shares issued 20187176
1998-02-19 close $0.4
Friday Feb 20 1998
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.
(c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
old url (better for printing) |
