Vancouver-based juniors Major General Resources (MGJ-V) and Ascot Resources (AOT-V) have signed a letter of agreement whereby the former can earn back a 50% interest in the Victoria Island diamond property in the Northwest Territories.
Currently, Ascot holds a 75% interest in the property, with Major General holding 25%.
The back-in deal hinges on the introduction of a third joint-venture partner that would be required to spend $1 million on exploration by Dec. 31, 2000 on behalf of Major General. Should the third company fall short, Major General would earn its interest on a pro rata basis.
The deal is subject to the approval of regulators and both boards.
Work conducted on the 2-million-acre property in 1994 and 1995 included till sampling and aeromagnetic surveys. The companies identified a target area with high indicator-mineral counts, as well as two magnetic anomalies.
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