Major General Resources Ltd MGJ VSE February 17, 1997
Additional Ground Acquired at Green Bay, Newfoundland
Glenn G. Schevchenko, President of Major General Resources Ltd., announces that the Company has finalized negotiations with Newfoundland Mining & Exploration Ltd. ("NME") , subject to regulatory approval, on Licences 4567, 4568 and 4775M consisting of 12, 80 and 8 mineral claims respectively (total of 2,000 acres) located in the Green Bay area, near Springdale, Newfoundland. The addition of this ground, which adjoins current claims to the south, will bring the Company's holdings at Green Bay close to 35,000 acres.
The NME claims cover rock units belonging to the favourable Catchers Pond Group of volcanics which host the Company's Hammerdown, Rumbullion and Orion gold deposits as well as a number of recently discovered VMS type base metal prospects.
Under the terms of the agreement, Major General has an option to earn a 100% interest, subject to a 1% NSR to NME, by issuing a total of 140,000 shares over a five year period, making a cash payment of $10,000 on or before September 14, 1998, incurring costs of minimum assessment for 1996 for each of the three licences and refunding the NME security deposits paid by NME to the Newfoundland government, the aggregate total of which for the three licences is estimated to be
$6,123. Upon regulatory approval, 10,000 shares of the Company will be issued.
All share issuances are subject to a one year hold period.
TEL: (604) 685-5254 Don Willoughby, Investor Relations
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