Received this in my e-mail - I don't know if it applies to EDIS or not, but did have Falconbridge involved:
Subject: Press Release
Date: Thu, 11 Jun 1998 11:52:59 -0700
From: "Novawest" <novawest@novawest.com>
To: Valued Investors:;
Press Release
JOINT VENTURE WITH FALCONBRIDGE LIMITED INCLUDING $400,000 PRIVATE PLACEMENT GRAND NORD PROJECT - QUEBEC
Vancouver Stock Exchange S.E.C. Exemption 12(g)3-2(b)
Trading Symbol "NVE" File No. 82-3822
Standard & Poors Listed
June 10, 1998
Vancouver, B.C. "(VSE: NVE)" NovaWest Resources Inc. ( the "Company") is pleased to announce that the Company has entered into a joint venture agreement with Falconbridge Limited, one of the world's leading mining companies, on Falconbridge's Grand Nord Project in northern Quebec.
Novawest Resources Inc. will earn a 50% interest in Falconbridge Limited's 7 permit (600 sq. km.) Grand Nord Project by providing $1 million of exploration funds towards the 1998 first phase of exploration. Logistical planning for the project is well underway, fuel and supplies already on site, and field crews are to be mobilized immediately. Falconbridge Limited will be the operator. A Technical Committee for the seven permits will be established immediately with Mr. Frank Puskas representing the Company, and in November 1998 a joint Management Committee will be struck with Mr. Frank Puskas and Mr. Patrick O'Brien representing Novawest Resources Inc.
In 1997, the Quebec Ministry of Natural Resources completed one of the most significant geochemical surveys ever completed in Canada. The survey covered 351,000 square kilometers of northern Quebec, which is an area equivalent to 25% of the entire Province of Quebec. Approximately 27,000 samples were taken. The entire area has the potential to host economic quantities of nickel, copper, cobalt, platinum group minerals, gold and other base and precious metals. In order to reduce the immense direct costs associated with such a survey, 5 mining industry participants worked with the Government of Quebec, and partially funded the project. Falconbridge Limited was a participant in the program as were four other Canadian exploration companies. In return, each of the industry participants received exclusive access to the data until its public release scheduled for
November 1998. Once the data was received and processed, the articipants met in Quebec City on February 5th, 1998 to select favoured exploration permits. It may be relevant to note that the order of permit selection was decided by draw, with Falconbridge Limited winning first pick overall.
The agreement also includes an area of interest agreement that encompasses the entire 351,000 square kilometre area surveyed in the initial Government of Quebec's Grand Nord Geochemical Survey. The data derived from the survey and from the entire area outside of the seven permits under the joint venture, is confidential to Falconbridge and the other initial participants in the survey until November, 1998. Falconbridge Limited is free to use that data at its discretion.
Once the data is made public by the Quebec government in November 1998, and Novawest Resources Inc. has had the opportunity to study the data, the Company has the right to purchase, until June 1999, a 50% interest in any additional mineral permits acquired by Falconbridge up to June 1999, within the 351,000 square kilometer survey area. In order to exercise this right Novawest must reimburse Falconbridge Limited 60 % of their acquisition costs which is comprised of 50% of their staking or permitting costs and an additional 10% to cover the administration and processing costs.
The agreement further provides that $400,000 of the $1 million being
provided by Novawest, will be funded by the purchase of $400,000 Cdn of common stock in the Company by Falconbridge Limited, by way of Private Placement. The Company will issue Falconbridge Limited 250,000 common shares at $1.60 per share. The shares will be subject to a hold period as required by any governing regulatory authorities. The proceeds of the Private Placement will be used for exploration on the Grand Nord Project, and flow-through funds may be substituted at Novawest's discretion.
Novawest Resources Inc. is pleased to be in the joint venture with
Falconbridge Limited on the Grand Nord Project. The Company is pleased to
have Falconbridge Limited, the second largest producer of primary nickel
products and amongst the lowest cost nickel producers in the Western World,
as a shareholder. They are engaged in the exploration, development, mining,
processing and marketing of metals and minerals worldwide with nickel,
ferronickel, copper, zinc and cobalt as principal products. Their other
products include silver, gold, platinum group metals, cadmium, indium and
sulphuric acid. Falconbridge Limited is the developer of the new Raglan
Ni-Cu-PGE mining operation in northern Quebec, which is one of the largest
new nickel operations in the world.
Novawest's participation in the 7 permit Grand Nord Project, more than
doubles Novawest's exploration interests within the Province of Quebec.
Novawest is now involved in the exploration of 17 mineral permits in
Northern Quebec, totaling 1,157 square kilometers or 285,900 acres. In
addition to this potential 50% interest in the new Grand Nord Project with
Falconbridge Limited, Novawest also has a 100% interest in 10 permits in
Northern Quebec's Raglan Ni-Cu-PGE Camp, a number of which are adjacent to
Falconbridge's Raglan holdings. Novawest will be commencing a significant
2nd year exploration program on the Company's Raglan Permits approximately
June 15, 1998.
The Grand Nord Project is the first project to be undertaken between
Novawest Resources Inc. and Falconbridge Limited. In addition, the two
companies are also in negotiations regarding a second joint venture in
northern Quebec. Management anticipates this second agreement will be
concluded in the immediate future. Novawest looks forward to working with
Falconbridge Limited on these exceptional projects and feels that the
exchange of geological information and expertise will be mutually
beneficial. All terms of the agreement are subject to VSE approval.
Novawest's management invites the public to visit the Company's homepage on
the internet (www.novawest.com) or the Vancouver Stock Exchange's new
internet site (www.vse.ca) for the most current information about the
Company. Or contact Novawest Resources Inc. at 1-800-663-8990 or e-mail us
at (novawest@novawest.com).
ON BEHALF OF THE BOARD OF DIRECTORS OF NOVAWEST RESOURCES INC.
"Patrick D. O'Brien"
____________________________________
Patrick D. O'Brien, President
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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