NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: JILBEY EXPLORATION LTD.
ME SYMBOL: JLB
SEPTEMBER 9, 1998
Jilbey and Celtic Joint Venture Buchans Junction to
Billiton
HALIFAX, NOVA SCOTIA--Jilbey Exploration Ltd. ("Jilbey") is
pleased to announce that it has entered into a joint venture
agreement with Billiton Exploration Canada Limited ("Billiton"), a
subsidiary of Billiton PLC, a major international metals producer
to explore the Buchans Junction property. The property is
currently held 50-50 with Celtic Minerals Ltd. and consists of 118
claims (2,950 hectares) located in the Buchans area of central
Newfoundland.
Under the terms of the agreement, Billiton may earn a 51 percent
interest in the property by incurring cumulative expenditures of
$500,000 over a four year period and has an option to earn an
additional 19 percent by making a $50,000 cash payment and
expending a further $1,500,000. Upon Billiton vesting its 51
percent or 70 percent interest, all future expenditures will be
funded on a pro-rata basis, unless either party elects to dilute.
Billiton will be operator and may accelerate the expenditures.
The agreement is subject to obtaining the necessary regulatory
approvals.
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