Hawk lands at AfriOre’s FSC project

Hawk Precious Minerals (HAWK-U) has agreed to take up to a half-interest in AfriOre‘s (AFO-T) 1,090-sq.-km FSC gold project in South Africa.

Hawk can earn an initial 35% stake by paying $20,000 and reimbursing certain AfriOre costs. The company must also advance AfriOre US$2.1 million to put toward exploration, development and property maintenance. Of that, US$500,000 has been paid; the balance is due by November 11, 2003.

AfriOre must use the advance by June 20, 2006, at which time the funds will be converted into shares of AfriOre’s wholly owned Kwagga Gold, which holds the mineral rights to FSC.

If Kwagga decides to discontinue the project it can retain the unused portion of the advance payment, at Hawk’s discretion, in return for the 35% stake. Otherwise, the agreement is terminated and the balance of the advance is returned to Hawk.

Hawk can boost it stake by 15% by forking over another US$1.4 million.

AfriOre will manage the project, and plans an immediate exploration program aimed at turning up Witwatersrand-type gold mineralization on previously identified targets.Iamgold (IMG-T) dropped its half-interest in the project in June of 2001, after a second drill hole cut rocks deemed to be to young to correspond to the targeted Witwatersrand rocks that might host gold.