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Gold/Mining/Energy : Falconbridge Ltd.( T.FL ) -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (45)	7/4/2000 3:58:58 PM
From: Condor	Read Replies (1) \| Respond to of 103

Cantex/Falconbridge to develop Suwar deposit Falconbridge Ltd FL Shares issued 177,041,400 Jun 30 close $18.25 Tue 4 Jul 2000 News Release See Cantex Mine Development Corp (CD) News Release Mr. Charles Fipke reports An agreement has been signed between Cantex Mine Development's wholly owned subsidiary Canadian Mountain Minerals (Yemen) Limited (CMMY) and Falconbridge International (Investments) Limited (FIIL), a wholly owned subsidiary of Falconbridge Limited, to develop the 100-per-cent-CMMY-owned Suwar nickel-copper-cobalt-silver +/- platinum group metal massive sulphide discovery, Yemen. The agreement allows for Falconbridge, acting as operator, to earn up to 60-per-cent working interest in the Suwar mining lease by financing, all exploration and mine development costs to the stage wherein a mine and mill (with concentrator) is constructed and a saleable concentrate is produced within a four-year period. Minimum exploration expenditures to hold the option are $1,355,000 (U.S.) per year for each of the first two years and $2,705,000 (U.S.) in the third year with an immediate $680,000 (U.S.) firm expenditure commitment subject to a 60-day due diligence of CMMY representations. In the event of a delay in commercial production as stated so that a saleable concentrate is not produced within the four-year period from signing, Falconbridge's interest will decrease 0.5 per cent per month of delay until a level of Falconbridge 51 per cent/CMMY 49 per cent is reached. Thereafter, Falconbridge is obligated to pay CMMY a non-refundable advance against future revenues of $67,700 (U.S.) per month for each month of additional delay to hold the option, escalating by 10 per cent semi-annually. After the positive feasibility study stage and the Falconbridge board of directors have approved mine development, Falconbridge will arrange to finance CMMY's entire share of capital costs for mine development at United States Federal Reserve Fund rate plus 1.125 per cent, to be repaid from nine/10ths of CMMY's after-tax share of mine revenues. Falconbridge shall have the first right of refusal for purchasing CMMY's share of metal concentrate, or unconcentrated ore during the mine payback period, thereafter CMMY shall have the exclusive right to market its own metal concentrates and products. Cantex is extremely pleased with the foregoing, as the agreement allows for the successful development of the discovery into a mine over a relatively short time frame. The development of a mine in Yemen will result in huge benefits in terms of employment and taxation; Canada will potentially have a needed additional source of nickel-copper-cobalt concentrate to supply Canadian smelters; and Cantex shareholders would benefit by enhanced shareholder value and by way of potential dividends. CMMY is pleased to now be joint venture partners with FIIL in the Suwar massive sulphide discovery, Yemen. Drilling results indicate the deposit to presently be the most potential undeveloped nickel-copper-cobalt-silver +/- platinum group metals discovery in the world. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com