Vancouver —
The $100,000 payment was required under an 1999 option-to-purchase agreement regarding various properties near Wells, B.C. However, the ministry filed a demand-for-payment letter totalling $54,300 against Mosquito. Wayside subsequently made arrangements to pay the amount in early January, then went ahead and paid $10,000 of the $100,000 payment required under the option to Mosquito.
A $100,000 private placement paves the way for Wayside to make all the scheduled payments. The financing comprises 1 million units priced at 10 apiece. A unit consists of one share and one warrant that is exercisable at 10 for a year. Once the placement is approved by the Canadian Venture Exchange, Wayside will pay the ministry in full and place $36,000 in trust until the lien against the properties is removed.
The payment allows Wayside to continue earning a 100% stake in the Island Mountain and Mosquito Creek claims, as well as a half-interest in the Cariboo Gold Quartz claims by making cash payment totalling $4 million by the end of 2003. The properties make up a part of Wayside’s Cariboo gold project in north-central British Columbia. The Frank Callaghan-led junior has a second option agreement allowing it to earn the remaining half-interest in the Cariboo Gold Quartz claims by spending $500,000 per year and completing a positive feasibility study.
The Cariboo project comprises 153 sq. km near Wells, 85 km east of Quesnel. The project centres on the historic Cariboo Gold Quartz, Island Mountain-Aurum and Mosquito Creek mines, which collectively produced more than 1.2 million oz. from 1933 to 1987.
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