Mali concessions agreementÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
Shiega Resources Corpÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ SHG
Shares issued 19,510,619ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Aug 11 close $0.30
Tue 11 Aug 98ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ News Release
(See Great Quest Metals Ltd (GQ) News Release)
Mr. Willis Osborne and Mr. Donald Nicholson report
An agreement has been signed concerning twoÿ concessionsÿ inÿ theÿ Filimana area in northwestern Mali, West Africa. Under the terms of the agreement, Great Quest acquires theÿ rightsÿ toÿ the Baoule River Minerals GIE and the Comptoir Aurifere du Mali GIE concessions for a consideration of $5,000 to be paid to Shiega by Great Questÿ andÿ the
issuanceÿ ofÿ 200,000ÿ sharesÿ ofÿ Greatÿ Quest to Shiega in four blocks of 50,000 shares over a 41/2 year period. The firstÿ blockÿ ofÿ 50,000ÿ shares willÿ beÿ issuedÿ on approval of the VSE. Each subsequent release of 50,000 shares would be subject to a registered geoscientist's report detailing the latestÿ workÿ on the concession and recommending additional programs on the concession and to the approval of the VSE. Production fromÿ theÿ concession isÿ subjectÿ to a 1-1/2 per cent net smelter royalty, payable to Shiega, up
to a maximum of $2-million (U.S.)
The Baoule River Mineralsÿ concessionÿ agreementÿ hasÿ beenÿ re-negotiated. Under the terms of the new agreement, Great Quest has the option to acquire a 95 per cent interest in the concession by paying $9,220 up front,ÿ $1,300 onÿ the granting of a two year Convention d'Etablissement and $157,000 over a four to 4-1/2 year period. Any production is subject to aÿ oneÿ perÿ cent net smelter royalty, payable to Baoule River Minerals. The concession covers an areaÿ ofÿ 198ÿ sqÿ kmÿ inÿ theÿ Filimanaÿ areaÿ of southwesternÿ Mali,ÿ 50kmÿ southeastÿ ofÿ Ashanti's Kalana gold mine (+ 1.0
millionÿ ounces).ÿ Inÿ 1989,ÿ theÿÿ Malianÿÿ governmentÿÿ carriedÿÿ outÿÿ a reconnaissance gold geochemical survey in the area. Soil samples were taken at 200m intervals along lines 1,000m apart. Three samples gave valuesÿ over 1,000ÿ partsÿ perÿ billionÿ goldÿ with a high of 2,030, and 22 samples gave values greater than 39 ppb.
In July, 1997, a 30 sq km area in the northern part of theÿ concessionÿ was sampledÿ atÿ 200metresÿ spacingÿ onÿ lines 500 metres apart. Three separate areas anomalous in gold were identified. One anomalous area was examined in 1998.ÿ This anomaly is described as being 2km long, more than 400m wide and open to the south. It occurs along a 750 metre wide zone of silicification. Duringÿ theÿ examinationÿ anÿ oldÿ 375 x 60m area of artisanal workings was
found. Twelve rock samples were assayed. Nine were anomalous, withÿ valuesÿ upÿ to 600ÿ ppbÿ gold.ÿ Theÿ samplesÿ were taken in the leached horizon, so higher values in gold should be expected with depth. Little explorationÿ hasÿ been doneÿ in the area, so management considers it a very important acquisition.
Uponÿ theÿ grantingÿ ofÿ theÿ Conventionÿ d'Etablissementÿ byÿ theÿÿ Malian government,ÿ Greatÿ Questÿ will commence a program consisting of geological mapping, soil sampling and trenching.
(c) Copyright 1998 Canjex Publishing Ltd.
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Well, at a glance, this is not great news. GQ-V is currently at 17 pennies, so 200,000 shares gives us about $34,000: wow. I realize that the shares will be given out over 4.5 years, but still... The 1.5% smelter royalty sounds fine (up to $2-million), but we won't be seeing that in a LONG time. The rest of the "fees" are small potatoes.
On the other concession (Baoule), the $157,000 over 4.5 years is okay...
I thought these two land areas were very promising for US? I guess SHG doesn't have any money. <sigh> I suppose Nkroful will be SHG's main foucus....
Curious to see GQ calls this a "very important acquisition." I wonder what the heck SHG calls it? Comments?
Wats |
