CALGARY, April 9 /CNW/ - Subject to regulatory approval, Flag Resources
has agreed to accept ten million ( 10,000,000) Golden Briar Mines Limited
shares, valued at 10 cents per share (50 percent above current market price),
for settlement of indebtedness, as of December 31, 2002, of $1,157,192.00 owed
to Flag by Golden Briar. Golden Briar Mines would also issue 1,500,000
warrants to Flag, exercisable at 10 cents per share, for one year. Completion
of the proposed transaction would give Flag a 35 percent controlling interest
in Golden Briar.
Subject to regulatory approval, Flag would issue 2,000,000 shares, valued
at 12 cents per share, to Golden Briar for cash advances of $240,000, and
500,000 share warrants exercisable at 15 cents per share, for one year.
Flag would assign to Golden Briar Mines a 50 percent working interest in
its Exploratory Licence of Occupation, Sudbury Ontario, subject to the
approval of the Ontario Ministry of Northern Development and Mines.
The 1750-acre Exploratory Licence is in Rathbun and Aylmer Townships,
20 miles north of Sudbury, near the northeast flank of the Sudbury Structure.
It is 6 miles due west, across Lake Wanapitei, from Flag's 70,000 acre
holdings, in the Wanapitei Anomaly.
The Exploratory Licence covers two gold occurrences, known as the Bennett
and Aylmer Occurrences. The Bennett Occurrence was partly explored by Flag in
1998, while the nearby Aylmer Occurrence has yet to be explored by modern
techniques. Recent prospecting in other unexplored portions of the ELO has
revealed a copper occurrence, a pyrite breccia, and a gold-bearing gossan
zone.
Flag's consulting geologist has recommended that the Aylmer Occurrence,
untested portions of the Bennett Occurrence, and the 600-foot interval between
them be further investigated, and initial exploration of the copper
occurrence, pyrite breccia and gossan zone, at an estimated cost of $114,800.
An aero-magnetic map of the area (Geological Survey of Canada, 1965,
Milnet Sheet) shows a circular magnetic anomaly, which appears to be located
in Mining Claim 1222831, and extending into the southwest corner of the
Exploratory Licence of Occupation. The anomaly is largely within an area of no
outcrop, and its cause is not obvious.
Flag has agreed to purchase a 100 percent interest in Claim 1222831, from
the vendors, for a down payment of $10,000, payments of $10,000 per year for
four years, and 100,000 shares of either Flag or Golden Briar. A payment of
$2,000,000 would be made 18 months after the commencement date of commercial
production of any metallic minerals from this claim. Golden Briar would have a
50% working interest in Claim 1222831, as well as the Exploratory Licence of
Occupation.
A ground magnetic survey is proposed to detail and confirm the airborne
circular magnetic anomaly prior to exploratory drilling to investigate the
cause of the anomaly.
Flag is presently assaying a 20-foot intersection, from 928 to 948 feet
(DDH BL 02-02), drilled at Boland's Lake in 2002, for nickel, copper,
platinum, palladium, and gold.
Consulting Geologist Jim Allan has joined Consulting Mining Engineer
Simon Brooksbank in evaluating and assessing Flag's 23 years of exploratory
work on its 70,000 acres in the Wanapitei Anomaly, including the Jess Lake and
Wolf Lake gold deposits, Cobalt Hill, Silvester Lake, Laundry Lake, Thomas
Lake, in Mackelcan Township, Boot Lake, Cathro Lake, Doon Lake, Matagamasi
Lake, Crystal North, and Rathbun Lake (Occurrence, Peninsula, North End), In
Rathbun Township. |
