Chilean Agreement Finalized
NP Energy Corporation Inc. and Last Frontier Oil Company Inc. have now finalized agreements regarding their joint participation in two major mining properties in Chile. The properties, the Mina Claudia and the Andacolla are under contract to Sierra La Plata S.A. a wholly owned Chilean subsidery of Last Frontier Oil Co. Inc.
NP Energy has been a major force in the acquisition of all rights, titles and interest in and to these properties. In return for these efforts is to receive the following:
A) 5,000,000 common shares of LFOC at a deemed value of $2.00 per share.
B) a 20% carried interest in these properties, up to commercial production as defined in property contracts at which time this becomes a 20% working interest.
C) item (B) will apply to all future acquisitions made by Sierra La Plata S.A..
A processing facility located on the Churmata property is being readied for production starting in March of 1997. The mill will produce gold from high grade veins, test metallurgy of the ore and provide a bulk sampling facility for the continuing exploration of the various properties. LFOC has contracted a team of Chilean geologists and engineers to direct the production and exploration of both the properties and oversee the milling operations.
LFOC commissioned reports on the properties by two qualified geological professionals. Gordon House, P.Geo., reports that the Andacolla group of claims contained drilled, probable reserves exceeding 3,000,000 metric tonnes of gold ore in the high grade veins and in excess of 3,000,000 metric tonnes in the mantos structures.
Reports by Malcom Fraser, Bsc., M.A., Economic Geography, state the development potential of one of the several undrilled properties, the "La Colorada", in the Andacolla group of claims, to be in excess of one million troy ounces of gold. None of the properties have had sufficient work completed to scratch the surface of the potential they hold. |
