Lysander Gold Corp LYS VSE January 20, 1997
Agreement With Kennecott Exploration Canada Inc.
Stephen R. Sopher, President, Lysander Gold Corporation (the "Company") announces that the company has entered into an agreement with Kennecott Exploration Canada Inc. ("Kennecott") pursuant to which Kennecott has granted the Company an option to acquire a 100% interest in the Dorothy Property (the "Property") located in north-central British Columbia in consideration of the Company paying Kennecott $10,000 at the time of signing of the Agreement (which amount is
non-refundable), the Company issuing to Kennecott 100,000 common shares of the Company within 18 months of the date of the Agreement, and the Company incurring, within 18 months of the date of the Agreement, exploration expenditures on the Property in an amount not less than the aggregate of $100,000 and the amount of any money granted or awarded by the British Columbia Ministry of Energy, Mines & Petroleum Resources to fund the exploration of the Property.
Following the exercise of the option by the Company, Kennecott will retain a 60% back-in right (the "Back-in Right") exercisable upon the presentation of a positive feasibility study by Kennecott paying the Company an amount equal to 150% to 60% of the expenditures incurred by the Company after the exercise of its option. If the mineable reserves are less than 100 million tonnes grading 0.6% copper or copper equivalent, the Company may give notice to Kennecott that it wishes to purchase the Back-in Right or Kennecott may give notice to the Company that Kennecott wishes to sell the Back-in Right to the Company. If mineable reserves are greater than 100 million tonnes grading 0.6% copper or equivalent, Kennecott may give notice to the Company that it wishes to sell the Back-in Right to the Company. If either of such notices are given, the Back-in Right will be sold to the Company in consideration for 100,000 common shares of the Company.
TEL: (604) 681-8069 Stephen R. Sopher, President |
