Newfields and Teck reach agreement for Kirkland Lake

The terms of an agreement have been settled between Newfields Minerals and Teck Corp. regarding the companies’ respective properties in the Kirkland Lake gold camp of Ontario.

Newfields may earn a 50% undivided interest in Teck’s Teck- Hughes and Kirkland Lake gold property, subject to the agreement, by spending $4 million in exploration over the next five years.

These properties represent 16 contiguous claims which are located on the western boundary of Newfield’s 28-claim Kirkland Basin property.

As part of the agreement, Newfields has also granted Teck an option to acquire up to 500,000 shares of Newfields exercisable on or before Feb 25, 1988 at a price of $3.50 per share, subject to regulatory approval.

Teck may earn a 50% interest in Newfields’ Kirkland Lake properties by arranging production financing upon submission to Teck of a positive feasibility study.

And concerning the continued funding of the company’s Kirkland Lake projects, Newfields has signed a tax cash flow-through exploration agreement with MVP Capital Corp. Pursuant to the agreement, Newfields will issue up to 731,708 shares in the form of a private placement at a price of $4.20 per share, subject to regulatory approval.

Total net proceeds to Newfields from the private placement will be $3 million.

Newfields has also executed the Margarita mine purchase agreement with J. Sorrell and M. Wallace. Located in southwest Arizona, the Margarita hosts 440,000 tons of 0.0723 oz gold per ton of drill indicated reserves. Newfields has appointed Davy McKee Corp., mining contractors and engineers, to conduct a feasibility study on this property upon receipt of regulatory approval.