FAQ-Why is it taking so long to find a partner for Buffalo Valley?
from Joe Kizis, Fairmile Gold Corporation Vice-President Exploration and Director
Fairmile began showing Buffalo Valley data to potential joint-venture
partners on January 19, after confidentiality agreements were signed.
There is an enormous amount of data available for review, which takes
a substantial commitment on behalf of the reviewing company to
evaluate properly. Several groups have made this commitment, and they
are currently examining the data in detail. Fairmile believes that
serious negotiations will begin in April.
Buffalo Valley is a large property with a great deal of information
available. There are a large number of high-quality exploration
targets that remain to be tested. Potential partners are being
prudent in evaluating all targets in detail. This process takes time,
particularly with the downsized staffs at many companies. There is
also the competition for time from other large projects and whole
companies that are available at this time.
In summary, the process takes time. To keep things in perspective,
consider Fairmile's previous joint venture at Buffalo Valley with Echo
Bay. Initial contact occurred in October 1995. It was followed by
several reviews of the data and property visits, with the basic terms
of an agreement negotiated on March 20, 1997. Further negotiations
resulted in an acceptable Letter of Intent on April 9, with was
announced in a News Release on April 10, 1997. |
