Newfield, T & H reach agreement on nine claims

An agreement granting T & H Resources an option to buy nine claims owned by Newfield Mines in Garrison Twp., east of Matheson, Ont., for $150,000 has been signed by the two companies.

The option gives T & H the exclusive right to explore the gold property.

T & H paid $20,000 in cash and has agreed to spend not less than $200,000 on exploration and development by Dec 31 of this year. T&H may extend the option an additional three years by paying Newfield $30,000 for the first extension, $40,000 for the second extension and $60,000 for the third extension, and agreeing to spend an additional $400,000, $400,000 and $500,000 on exploration and development during the first, second and third extensions, respectively.

Newfield will be entitled to a royalty once the option is exercised.