Much anticipated press release attached. Happy Investing.
North American Tungsten Corporation Ltd -
News Release
Agreement to acquire tungsten deposits
North American Tungsten Corporation Ltd
NTC
Shares issued 9342975
1997-02-07 close $0.39
Wednesday Feb 12 1997
News Release
Also Aur Resources Inc (AUR)
Mr Stephen Leahy reports
The company has signed an agreement in principle with Aur Resources of Toronto
to acquire the Tungsten assets formerly held by Canada Tungsten. These assets
include the following:
The CanTung mine in the NWT which encompasses 15,000 acres and has over
three years of proven reserves based on a mineable rate of 1100 tonnes per day.
In addition to all the serviced mill facilities a full townsite exists for production
employees.
The MacTung property 110 miles north of the CanTung mine which hosts drill
proven and probable reserves of 23.3 million tonnes of high grade scheelite
tungsten ore, arguably the largest known concentrated deposit in the western
world.
The Hernerdon property near Plymouth, England which has seen limited
production since its original discovery, holds 73 million tonnes of lower grade ore,
of which 38 million tonnes are considered mineable.
The purchase of 100% of the issued shares of Tungsten Inc, a wholly owned
subsidiary of Aur Resources, whose sole asset is a 50% joint venture in an
ammonium meta-tungsten processing plant in California which produces
approximately 30000 metric tonnes units (660,000 lbs) annually of AMT.
The acquisition price of these assets is as follows: (a) $487,438 in cash; (b)
A$3,000,000 reclamation bond posted for the CanTung mine; (c) the issuance of
2,261,905 treasury shares of North American Tungsten; (d) a 4% net smelter
royalty to Aur of which 1% on the CanTung Mine would be used to replace the
$3,000,000 bonding. One half of the royalty may be purchased by North
American Tungsten on each property for $2,500,000.
Completion of the transaction is subject to the approval of the VSE as well as to
the satisfactory completion of due diligence by North American Tungsten as to the
status for the assets being purchased and to the settling and execution of definitive
documentation between Aur Resources and North American Tungsten to give
effect to the transaction.
The company anticipates executing a formal agreement subject to due diligence
within 45 days and closing within 60 days thereafter. |
