Wilco Mining enters option agreement with prospectors.

Toronto-based Wilco Mining has entered into an option agreement with prospectors David Petrunka and Wayne McChristie of Thunder Bay, Ont., covering a group of 45 unpatented mining claims and two patented mining locations near Upper Shebandowan Lake.

Under the agreement, Wilko will make an initial cash payment of $10,125 and issue 100,000 treasury shares to the prospectors. To earn the right to explore the properties on an annual basis, Wilko will issue 50,000 shares to Petrunka and McChristie and spend $250,000 on exploration programs annually.

At any time within the 5-year option period, Wilko may also purchase the prospector’s entire interest in the claim group with an aggregate of 150,000 treasury shares and $130,000. To buy the claim group, Wilko must also complete $1 million in exploration and development work. The vendors retain a 2% net smelter royalty interest, subject to a buy-back provision.

The two properties which cover 397 acres and contain the Vanguard copper prospect, are owned by Green Coast Resources of Toronto and are held under option by Messrs Petrunka and McChristie. They have assigned their total interest to Wilco.

Under terms of the Green Coast option, Wilco may earn an 80% undivided interest in the property upon completion of $400,000 in exploration work within two years. Green Coast retains a 20% working interest, subject to dilution for non- payment to a carried 10% net profits interest.

The Vanguard Prospect was explored for copper in the l940s and 1950s and has remained dormant since then. Mineralization occurs in a chart horizon that has been traced for about 4,000 ft. According to President Douglas Hume, a recent sampling has given high values in zinc and silver together with significant gold.

Company geologists view the sulphide zones in the chart as volcanogenic and will explore for polymetallic massive sulphides. Past drilling produced unusually high gold assays providing the impetus for re-examination of the property.

In addition to the Upper Shebandowan claims, a flow- through financing of not less than $1 million will also fund exploration programs on Wilco’s Stirling polymetallic massive sulphide and the Wine Harbour gold properties in Nova Scotia.

Work on the Shebandowan claims is expected to get under way within weeks pending regulatory approval.