Mexican exploration agreement; shares for debt
Golden Hemlock Explorations GHE
Shares issued 7,128,326 May 14 close $0.10
Thu 14 May 98 News Release
Mr. Ian Brown reports
The company has entered into an agreement with West Coast Mines of Dallas,
Texas, whereby West Coast has acquired an option to earn a 25 per cent
interest in the Santa Rosa claim, one of the claims comprising the
company's San Jose de Gracia mineral project in Sinaloa, Mexico, by
expending $375,000 (U.S.) over two years. As part of the agreed
expenditure, $125,000 (U.S.) has been advanced or will be advanced against
certain payments due on the Santa Rosa claim, of which $85,000 (U.S.) is
due May 15, 1998. These payments shall be credited towards the $375,000
(U.S.) amount, as will a payment by West Coast of $45,000 (Canadian) for
the preparation of engineering reports on the San Jose de Gracia project
which is under way.
The Santa Rosa claim comprises approximately 32 hectares within the overall
approximate 4,155 hectares of the San Jose de Gracia project. It is an
irregularly shaped claim, approximately in the center of the projects
adjacent to, among others, the La Union claim and not far from the Tres
Amigos and Mina Grande claims. West Coast is already the holder of various
contractual rights and interests in the San Jose de Gracia project arising
from agreements pre-dating the involvement of the company and including a
24.9 per cent net profits interest, arising from and defined in a December
1996 agreement among the company, its subsidiary Minera Finisterre S.A. de
C.V. and West Coast. One board member of West Coast is also a board member
of the company.
The company has agreed to settle debts with two creditors, one an insider
of the company and the other a financial institution for the account of an
insider of the company, in the amount of $280,000 (Canadian) by the issue
of 1,866,660 shares at 15 cents per share. The debts arose in October 1997
by way of cash loans to the company. The shares to be issued will be
subject to a hold period. |
