An agreement has been made between La Sarre Mining (ME) and Terre D’Or whereby the former may acquire a 90% interest in the former Rochette property in Launay Twp. in northwestern Quebec by spending $200,000 on exploration work over a 5-year period.
Once La Sarre has obtained its interest, Terre will have the right to buy back a 39% interest for $78,000. After the buy-back, a joint venture (La Sarre 51%, Terre 49%) will be formed, with La Sarre acting as operator.
If Terre does not buy back the 39% interest, its 10% interest will be transformed into a 10% net profit royalty. One claim is subject to $1- per-ton royalty of mined ore to a third party. La Sarre owns the first right of refusal for the 10% interest, for the 39% buy-back interest and for the eventual 10% net profit royalty.
The property underwent exploration during the 1940s. The agreement between the two companies is subject to regulatory approval.
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