Condor International Resources Inc -
NWT diamond prospects acquired
Condor International Resources Inc COD
Shares issued 15413386 1998-04-01 close $0.16
Thursday Apr 2 1998
Also Caledonia Mining Corporation (CAL)
Mr Fred Hewett reports
Condor International Resources has entered into an agreement with Portree Inc which will allow it to acquire up to a 50% interest in the Kikerk Lake project 500km north of Yellowknife. The project is comprised of three properties (the Hunter East, Hunter West and Cascares) totalling 92 claims covering over 237,000 acres.
Since 1994, Caledonia Mining Corp has undertaken a program of detailed till sampling, airborne and ground geophysical surveys and limited drill testing of three targets in a search for diamondiferous kimberlites. Work has been focused on the Hunter East property. Probe work completed to date on the indicator minerals, including G10 garnets, indicates the postulated source kimberlites have an excellent potential to host diamonds.
A 1998 program consisting of in-fill till sampling, coupled with ground prospecting and a glacial study is proposed to determine the exact up-ice closure on 1997 targets. A diamond drill program to determine the source of indicator mineral anomalies is recommended once the remaining 75 till samples from the 1997 program have been analyzed and the proposed detailed in-fill sampling is completed. It is anticipated that this program will begin early in July.
Under this agreement, Portree agrees to assign its option to earn up to a 50% interest in the Kikerk Lake JV project to Condor. To acquire this option, Condor must issue to Portree, 1,500,000 special warrants and assume Portree's rights, benefits, duties and obligations under the option agreement with Caledonia. Each special warrant will be convertible into one share as soon as the 120 day hold period from the closing date of the agreement with Portree becomes applicable. Condor has also agreed to file an AIF with the BCSC within 60 days of the signing of the agreement.
Under the option agreement with Caledonia, Portree could earn up to a 50% interest on the Hunter East and Hunter West properties and up to a 45% interest in the Cascares property by expending $1,000,000 on exploration over three years. Portree has completed the first year obligation by expending $300,000 in exploration. Condor will initially earn a 30% interest in the properties by expending the next $300,000 in exploration and may increase its interest to 50% by expending an additional $400,000 in exploration. Once Condor has fully vested, Caledonia can earn an additional 5% by expending $500,000 in exploration within the following six months. Thereafter, exploration expenditures will be incurred on a joint venture basis, with Caledonia as operator. The Hunter East and Hunter West properties are also subject to a 2% nsr and a 2% gross override royalty, while the Cascares property is subject to a 1% gross override royalty and a 10% npi.
A finders' fee of 150,000 special warrants is also payable. Each special warrant will be convertible into one share of Condor as soon as the 120 day hold period from the closing date of the agreement becomes applicable.
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