NEWS RELEASE
Consolidated Shoshoni Gold Inc -
$500,000 private placement; three
property transactions
Consolidated Shoshoni
Gold Inc
CHJ
Shares issued 5895581
1998-03-26 close
$0.18
Friday Mar 27 1998
Mr George Erskine reports
The company has arranged a brokered private
placement of units at $0.15 to raise $500,000
before commission, of which $250,000 is
offered on a flow through basis. McDermid St
Lawrence is in the process of finalizing the
private placement. Each unit will consist of one
share plus one warrant exercisable at $0.18 in
the first year and $0.20 in the second.
A commission of 8% of funds raised is payable
to the agent. The agent will also receive
warrants to purchase up to 200,000 units at
any time up to two years from closing of this
offering.
The VSE has approved three property
transactions, allowing the company to acquire
an interest in the Rickaby, Aldina, and Cunniah
Lake mineral properties in the Thunder Bay
mining division, Ontario.
The company will acquire an 85% interest in
the Rickaby property, subject to a 3% nsr, by
paying the vendor $8,000 upon VSE approval,
performing exploration work totalling $500,000
over three years and issuing 200,000 shares in
four allotments of 50,000 each, the first to be
issued upon VSE approval, and subsequent
allotments of 50,000 shares upon completion
of each subsequent work phase and filing of an
engineering report recommending further work
on the property.
Upon the company having spent $300,000 on
the exploration of this property, the vendor has
the option for 90 days to pay the company
$80,000 to reduce the company's interest in the
property to 60%. In the event the vendor elects
not to exercise the above option, the vendor
has a further option for 90 days, upon the
company having spent $500,000 on the
exploration of this property, to pay the
company $50,000, thereby reducing the
company's interest in the property to 75%.
One-half of the nsr can be repurchased at the
option of the company for $1,000,000.
The company has entered into an agreement
with Wally Magnussen, of Kakabeka Falls,
Ontario, to start phase I of the exploration
program on the Rickaby property. Phase I
consists of a minimum 2,000 foot NQ drill
program at a cost of $19.50 per foot all in.
Under the Aldina property option agreement,
the company will acquire an 85% interest,
subject to a 3% nsr, by paying the vendor
$8,500 upon VSE approval, performing
exploration work totalling $500,000 over three
years and issuing 200,000 shares in foul
allotments of 50,000 shares, the first allotment
to be issued upon VSE approval and
subsequent allotments to be issued upon
completion of each subsequent work phase
and filing of an engineering report
recommending further work on the property.
Upon the company having spent $300,000 on
the exploration of this property, the vendor has
the option for 90 days to pay the company
$80,000 to reduce the company's interest in the
property to 60%. In the event the vendor elects
not to exercise the above option the vendor has
a further option for 90 days upon the company
having spent $500,000 on the exploration of
this property, to pay the company $50,000,
thereby reducing the company's interest in the
property to 75%.
Upon receipt of a positive production feasibility
study on the property, the vendor will receive a
production bonus equal to $10,000 for each
percentage point earned by the company in the
property. One-half of the nsr can be
repurchased at option of the company for
$1,000,000.
The company will acquire a 100% interest,
subject to a 1% nsr in the Cunniah Lake
property by issuing from treasury, 200,000
shares in four allotments of 50,000 shares, the
first allotment to be issued upon VSE approval,
and subsequent allotments of 50,000 shares
upon completion of each subsequent work
phase and filing of an engineering report
recommending further work on the property.
As of the date of this news release, the
company has issued 150,000 shares from
treasury, the initial 50,000 shares for each
property transaction, and made a cash
payment of $16,500 to the vendor with respect
to Aldina and Rickaby properties. The shares
are subject to a one year hold period which
expires March 2 1999.
There were no bonuses, finder's fees or
commissions paid in connection with this
transaction.
(c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
Mr Metals |
