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Gold/Mining/Energy : SUDBURY AREA AND THE PGM PLAY -- Ignore unavailable to you. Want to Upgrade?

To: Brumell who wrote (284)	6/14/2000 3:26:00 PM
From: Diamond Daze	Read Replies (2) \| Respond to of 349

A SWG Baby... Golden Sitka Resources Inc - Golden Sitka enters JV agreement with Falconbridge Golden Sitka Resources Inc GSZ Shares issued 4,509,467 2000-06-13 close $0.34 Wednesday Jun 14 2000 Also Falconbridge Ltd (FL) Mr. John Paterson reports Golden Sitka Resources has signed a letter agreement with Falconbridge Limited covering two project areas within the Sudbury district, Ont. The two areas include the Foy and Footwall properties described below. Foy project This project is located 30 kilometres northwest of Sudbury and comprises about 1,950 hectares of patented and unpatented claims. Within the boundary of the project area is a 10.5-kilometre strike length of the Foy offset dike which is host to numerous copper-nickel-platinum-palladium prospects. Footwall project This project is located 15 kilometres northeast of Sudbury and comprises about 1,600 hectares of patented and unpatented claims. The area is underlain by an eight-kilometre strike length of Sudbury norite and sublayer rocks which host the Falconbridge and Falconbridge East mines. A three-kilometre portion of this prospective unit is covered by overburden and the area has significant potential to host copper-nickel and platinum-palladium deposits. John Paterson, president of Golden Sitka, stated: "This agreement with Falconbridge gives our company the opportunity to explore highly prospective ground in Sudbury not previously available to a junior company. In conjunction with the platinum-palladium prospects we have acquired in various parts of Ontario, the Falconbridge joint venture establishes Golden Sitka as one of the premier copper-nickel-platinum-palladium junior exploration companies in Canada." Under the terms of the letter agreement, Golden Sitka will have the option to earn a 60-per-cent interest in both projects from Falconbridge by expending $6-million on exploration over three years. During the first year of exploration, a minimum of $1-million must be spent. Once Golden Sitka earns its 60-per-cent interest, the joint venture partners will contribute on a pro rata basis. Falconbridge will have the option to increase its working interest in any specific project to 70 per cent by financing a bankable feasibility study and providing 100 per cent of the funds to put a deposit into production. Falconbridge will be entitled to recover mine construction costs from 90 per cent of net cash flow from a mine. Within the three-year option period, Falconbridge will have the right to purchase by way of private placement up to 500,000 shares of Golden Sitka at a price equal to the closing price for the 10 trading days prior to Falconbridge's notice to purchase the shares. The final agreement is subject to approval of the management of Falconbridge and Golden Sitka. The conclusion of a final agreement with Falconbridge is also subject to receipt of regulatory approval for Golden Sitka's proposed reorganization plan, as referenced in its news releases in Stockwatch Feb. 29 and May 12, 2000. The proposed reorganization was approved by the shareholders of Golden Sitka at the annual and special meeting of shareholders held on May 12, 2000. The reorganization plan includes a consolidation of the company's shares on a basis of 4 for 1, a change of name to Aurora Platinum Corp. and a private placement financing for total gross proceeds of $1.25-million, among other matters. No finder's fee is to be paid regarding the agreement and Falconbridge and Golden Sitka are not related parties. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com