Aranlee Resources Ltd
ARB
Shares issued 18600000
1998-02-24 close $0.11
Wednesday Feb 25 1998
The VSE has accepted for filing documentation pertaining to a letter agreement
dated October 7 1997, and option agreement dated December 2 1997,
(collectively the agreement), whereby Rio Tinto Mining and Exploration Ltd has
the option to acquire from the company, a 100% interest in the El Acay
gold-copper property 100km west of the city of Salta, northwest Argentina.
Under the agreement, Rio Tinto is obligated to:
1.Contribute to the agreement, its 100% owned Saladillo concession adjacent to the El Acay property (collectively combined property);
2. Assume all remaining option payments to the underlying property owner
totaling US$830,000 over four years and a cash payment of US$1,000,000
within 180 days on completion of a bankable feasibility study; and
3. Incur US$2,000,000 in exploration expenditures on El Acay and complete a
bankable feasibility study over five years.
Upon Rio Tinto acquiring the 100% interest in El Acay, the company has the right
to buy back up to a maximum 40% interest in the combined property within 180
days of the completion of a bankable feasibility study by paying Rio Tinto 1.75
times the expenditures incurred prorated to the percentage interest sought. If the
company elects not to exercise the buy-back right, then a 3% nsr royalty is
retained by the company.
Further to the VSE notice of May 24 1996, the VSE has also accepted for filing,
documentation pertaining to an amending agreement dated October 7 1997,
whereby the company and Starcross Properties Ltd have amended their
November 16 1995 option agreement. The amending agreement acknowledges
the terms of the company's agreement with Rio Tinto and grants the company to
exercise its option for the remaining 30% interest in one of the eight properties
known as the El Acay property, such that the company holds 100% interest,
subject to the completion of a positive feasibility study on El Acay by Rio Tinto.
Consideration consists of the issuance 1,600,000 shares of the company to
Starcross subject to filing a positive feasibility study acceptable to the exchange.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
