fin-info.com
1998-03-25 (provided courtesy of Canadian Corporate News.)
Regal Goldfields Limited: Falconbridge Drilling Second Anomaly on Regal
Property in Kidd Township
TORONTO, ONTARIO--Regal Goldfields Limited announces that it has
signed an amendment to the previously announced agreement with
Falconbridge Limited under which Falconbridge has the right to
earn a 70 percent interest in Regal's claims in Kidd Township.
Regal currently has a 100 percent interest in the property which
consists of 20 claims located approximately 16 miles north of the
City of Timmins in Northeastern Ontario. These claims are located
approximately 6,600 feet to the west of the Kidd Creek Mine and
2,600 feet southwest of the Chance base metal deposit, both owned
by Falconbridge.
Falconbridge has commenced a diamond drill hole to test an anomaly
which was identified by down-the-hole electromagnetic ("UTEM")
surveys completed by Regal during its fall, 1996 exploration
program. Felsic volcanic rocks, which have been identified as
rhyolite from geochemical analysis, have been found in two holes
previously drilled in the area. Under the terms of the amended
agreement, Regal must pay the invoice submitted by the contractor
who drills the hole. All other costs associated with the drilling
of the hole are the responsibility of Falconbridge.
If Falconbridge earns a 70 percent interest in the property, a
joint venture will be formed with Falconbridge holding a 70
percent interest and Regal a 30 percent interest. Under the terms
of the amended agreement, if a joint venture is formed, Regal will
be entitled to a credit towards its share of expenditures required
under the joint venture agreement in the amount of twice the
invoice paid by Regal for the drilling of the current hole.
The first hole drilled by Falconbridge under the agreement with
Regal intersected approximately 30 metres of graphite which
explained the anomaly which was being tested.
Further, Falconbridge has identified an additional anomaly on
another area of the Regal claim block which it currently plans to
drill, at its cost, in the fall of 1998.
Regal presently has 11,313,643 common shares and 2,000,000 special
warrants outstanding. The special warrants are exercisable into
2,000,000 common shares and 1,000,000 common share purchase
warrants within six business days after a receipt is issued by the
Ontario Securities Commission for a final prospectus qualifying
such common shares and warrants, or on June 23, 1999, whichever is
earlier. Each common share purchase warrant entitles the holder
to acquire one common share in the capital of Regal at an exercise
price of $0.20 per common share at any time on or before December
23, 1999. Further, a rights offering with an expiry date of April
8, 1998 is currently outstanding under which a maximum of
3,672,160 common shares could be issued at $0.14 per share.
Regal is engaged in exploration for and development of mineral
properties in Canada. It currently has active exploration
programs in northwestern Cape Breton Island, Nova Scotia, and Kidd
Township in Timmins, Ontario.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Regal Goldfields Limited
Richard Brissenden
President
(416) 364-1130
(416) 364-6745 (FAX)
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN. |
