Abiting buys Hammerdown

Vancouver-based Major General Resources (MGJ-T) has completed the sale of its Hammerdown-Rumbullion gold deposit, in central Newfoundland’s Springdale-King’s Point mining district.

The buyer, privately held Abiting, has paid $3.4 million in cash and will pay a further $600,000 at a rate of $10 per oz. gold produced in excess of 70,000 oz., up to 130,000 oz. After 200,000 oz. of production, Major General will receive $20 per oz. if the price exceeds US$290 per oz.

Also, Abiting has agreed to buy and cancel all third-party royalty interests and back-in rights on a portion of the Rendell-Jackman mineral claims, retained by Major General outside the Hammerdown-Rumbullion deposit.

The Rendell-Jackman claims include the Lochinvar base metal deposit, which contains 570,000 tonnes grading 7% zinc-equivalent.

About 2 km southwest of the Hammerdown deposit is the Orion gold deposit, in which Major General owns a 100% interest. Gold mineralization there has been intersected to a depth of 300 metres.

Major General will continue to explore its remaining Newfoundland gold and base metal properties.