Cross Lake to raise up to $200,000 for exploration
Cross Lake Minerals Ltd CRN
Shares issued 35,182,665 May 2 close $0.095
Thu 2 May 2002 News Release
Mr. Brian Kynoch reports
CROSS LAKE MINERALS LTD.: PRIVATE PLACEMENT ARRANGED; SHERATO ...
Subject to all necessary approvals, Cross Lake Minerals has arranged a
private placement of up to 1.25 million units at a price of 16 cents per
unit for gross proceeds of up to $200,000. Each unit will consist of one
non-flow-through common share and one flow-through common share.
The proceeds from this placement will be used to finance exploration work,
which may include rock sampling, trenching, mapping and drilling on the
company's Canadian properties, including the Ingenika/Swannell, Wasi Creek
and Myoff Creek properties in British Columbia, and on general and
administrative expenses. Bolder Investment Partners Ltd. will receive a
finder's fee in cash equivalent to 5 per cent of the portion of the
financing arranged.
The company also advises that, subject to all necessary approvals and
signing of a formal agreement, the business terms announced in its release
of Oct. 17, 2001, with respect to the option of the 100-per-cent-held
Sheraton-Timmins property to Falconbridge Limited have been revised.
Instead of earning up to a 70-per-cent interest, Falconbridge may now earn
up to a 65-per-cent interest as follows. As previously announced, a
50-per-cent interest in the property may be earned by making cash payments
of $500,000 and property exploration expenditures of $3,725,000 over five
years. However, Falconbridge may now earn an additional 15-per-cent
interest, instead of 20 per cent, by completing prefeasibility and
feasibility studies. The objective would be to commence such work as soon
as possible and to sustain it on a continuous basis until its completion.
If Falconbridge elects to exercise the additional option and wishes to
delay the start of or suspend the work on the prefeasibility or feasibility
studies, Falconbridge will make $100,000 annual advanced royalty payments
(ARP) until commencement or resumption of said work. The ARP are to be
recouped from 90 per cent of the company's share of revenues from
production.
Upon a production decision being made, Falconbridge will make a
$1.0-million cash payment (production decision bonus) to the company which
will have nine months to raise its share of preproduction costs. Rather
than financing 100 per cent of such costs as previously announced,
Falconbridge will allow the company, at the company's option, to finance
its share of costs second. That is, the company will be required to finance
its 35 per cent only after Falconbridge has spent its 65 per cent share. In
this event, Falconbridge will recoup any ARP and the production decision
bonus, plus interest, from 95 per cent of the company's share of revenues
from production. Management believes that this second-in financing option
will be a significant advantage to the company when the time comes to seek
its share of financing.
Also, the business terms reported in the company's release in Stockwatch of
Oct. 17, 2001, with respect to the option of the Night Hawk Lake (NHLJV)
zinc-copper-silver property have been revised, subject to all necessary
approvals and signing of a formal agreement. The NHLJV property is held by
the company, East West Resource Corporation and Canadian Golden Dragon
Resources Ltd., on a 40-40-20 basis, respectively, with the company as the
operator.
Instead of earning up to a 70-per-cent interest, Falconbridge may now earn
up to a 65-per-cent interest in the NHLJV property as follows. As
previously announced, a 50-per-cent interest in the NHLJV property may be
earned by making property exploration expenditures of $2,975,000 over six
years. However, Falconbridge may now earn an additional 15-per-cent
interest, instead of 20 per cent, by completing prefeasibility and
feasibility studies. The objective would be to commence such work as soon
as possible and to sustain it on a continuous basis until its completion.
If Falconbridge elects to exercise the additional option and wishes to
delay the start of or suspend the work on the prefeasibility or feasibility
studies, Falconbridge will make $100,000 annual advanced royalty payments
(ARP) until commencement or resumption of said work. The ARP are to be
recouped from 90 per cent of the partners' share of revenues from
production.
Upon a production decision being made, Falconbridge will make a
$1.0-million cash payment (production decision bonus) to the partners,
which will have nine months to raise their share of preproduction costs.
Rather than financing 100 per cent of such costs as previously announced,
Falconbridge will allow the partners, at the partners' option, to finance
their share of costs second. That is, the partners will be required to
finance their 35-per-cent only after Falconbridge has spent its 65-per-cent
share. In this event, Falconbridge will recoup any ARP and the production
decision bonus, plus interest, from 95 per cent of the partners' share of
revenues from production. The partners believe that this second-in
financing option will be a significant advantage when the time comes to
seek their share of financing.
The company is in the process of planning the 2002 field season. With the
recently arranged financing, the company's first priority will be the
Ingenika/Swannell property, followed by the Wasi Creek and Myoff Creek
properties. Details of the programs will be released in due course.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
