Zahavy to buy Getty’s interest in Favourable Lake

Alberta-listed Zahavy Resources has exercised its right of first refusal and has decided to purchase Getty Resources’ 50% interest in the Favourable Lake joint venture property located north of Red Lake, Ont.

This will bring Zahavy’s interest in the project to 100%.

Zahavy Chairman A. J. Lewis tells The Northern Miner the price to be paid for Getty’s interest is $3.6 million. Zahavy has 90 days to close the deal. Financing is now being arranged, he says.

In the meantime, the first phase of exploration at the property is continuing. Mr Lewis notes that Getty is still committed to provide 50% of the funds for this $2.8 million program until the closing date of the deal.