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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Famularo who wrote (4760)	4/9/1998 1:54:00 PM
From: Roman	Respond to of 7966

Troymin Announces Joint Venture and Private Placement Agreements with De Beers to Explore Buffalo Hills Diamond Prospect CALGARY, ALBERTA--(BUSINESS WIRE)--April 9, 1998--Troymin Resources Ltd. (Alberta Stock Exchange:TYR. - news; ME:TYR. - news) Troymin Resources Ltd. (TYR-ME,ASE) is pleased to announce that it is proposing to enter into a joint venture agreement with Monopros Limited of Toronto, a wholly owned Canadian subsidiary of De Beers, the world's leading diamond producer. Pursuant to the terms of the proposed agreement, Monopros will have the right to earn up to a 60 percent interest in Troymin's Buffalo Hills Diamond Prospect located in northern Alberta. Troymin will also enter into a subscription agreement whereby Monopros will purchase by private placement 428,000 units of Troymin, each unit consisting of one common share and one common share purchase warrant. These agreements will be subject to regulatory approval. Troymin's Buffalo Hills Diamond Prospect comprises five strategically located blocks of permits totalling 1.1 million acres on the Buffalo Head Craton which hosts Alberta's only diamondiferous kimberlite pipes. Since the initial discovery in early 1997, a total of 23 kimberlite pipes have been reported by the Ashton group in an ongoing exploration program in this area. Pursuant to the terms of the proposed joint venture agreement, Monopros must incur a minimum expenditure of $5.5 million on a multi-staged exploration and development program by February 28, 2002 to earn a 51 percent interest. Monopros will have the right to earn a further 4 percent interest by financing 100 percent of the initial $15 million of expenditures incurred which may include a full feasibility study. If Monopros arranges financing for Troymin's share of the costs of developing the first mine, the Company can earn an additional 5 percent interest, resulting in ownership by Monopros of 60 percent and Troymin of 40 percent in the joint venture. The proposed subscription agreement will provide that Monopros will subscribe for 428,000 units of Troymin at the price of $0.70 per unit, each unit consisting of one common share and one warrant to purchase one additional common share of Troymin at a price of $1.05 per share for a period of two years. Monopros, as operator of the proposed joint venture, has advised Troymin that, based upon its initial due diligence review, it believes there are a number of geophysical targets which show kimberlite pipe-like characteristics on the properties. Field operations, including geophysical surveying, sampling and drilling are expected to be underway by early summer.