An option agreement has been signed by Kerr Addison Mines (TSE) and Noveder Inc. (ME) (formerly Eider Resources) whereby Kerr (through its Quebec affiliate, Kerr Addison Exploration), may earn a 50% interest in the 154-claim Rouyn-Beauchastel gold property at Rouyn-Noranda, Que.
Under the agreement, which is subject to regulatory approval, Kerr must spend a total of $7 million on exploration and development work by June 1, 1994, to earn its 50% interest. Kerr will also purchase $800,000 worth of Noveder treasury common shares, of which $200,000 will be spent this year.
When Kerr has acquired its 50% interest, a joint venture will be formed. Should either party’s interest fall to 15% or less, the interest will be forfeited and replaced with a 10% net profits royalty.
Noveder owns 100% of the property. However, under an agreement signed by Noveder and Golden Briar Mines (ME) in 1985, Golden Briar stands to benefit from a percentage of the cash flow (as defined in the agreement) in the event the property goes into production.
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