AVALON VENTURES LTD. ("AVL")
CANADIAN GOLDEN DRAGON RESOURCES LTD. ("CGG")
EAST WEST RESOURCE CORPORATION ("EWR")
NOTICE TYPE: Property-Asset Agreement
NOTICE DATE: June 4, 1999
The Vancouver Stock Exchange has accepted for filing a letter agreement dated March 1, 1999 between Avalon Ventures, Canadian Golden Dragon and East West pursuant to
which Canadian Golden Dragon and East West may jointly acquire a 50% interest in two claim groups known as Wolf Mountain and Disraeli properties located in the Thunder
Bay Mining Division, Ontario. Consideration is $10,000 up front, payment of all future cash payments due to the underlying vendor Mr. Robert Fairservice ($35,000 on or
before September 1, 2000), exploration commitments of $150,000 on the Wolf Mountain Property by March 31, 2000, and assessment work on the Disraeli Property
(approximately $60,000) by November 1, 1999, 50,000 shares each to Avalon up front and a further 50,000 shares each within twelve months of approval and cumulative
exploration expenditures of $300,000 on the properties by the earlier of September 1, 2001 or 24 months from Exchange approval.
In addition, East West and Canadian Golden Dragon may earn an additional 10% interest by spending $700,000 within five years of the approval date ($150,000 firm within 12
months of election) and issuing a further 50,000 shares each. Prior to the exercise of the option to purchase the additional 10%, the company is required to provide the
Exchange with a property report that recommends further work.
The property remains subject to a 2% net smelter return royalty in favour of Mr. Fairservce, of which 1% may be purchased for $1,000,000. The purchase of the royalty is
subject to the prior approval of the VSE. |
