Teck to finance development of Niblack project

The Niblack massive sulphide project in southeastern Alaska has attracted the attention of Teck (TSE). The major recently agreed to finance development of the project in return for the right to earn a 51% interest from Abacus Minerals (VSE).

Teck will initially purchase 375,000 shares of Abacus at $1.00 per share by Nov. 21, and a further 1.6 million shares at $1.50 each by Jan. 31, 1996.

The initial private placement will make sure the 1995 drilling program continues at the Niblack mine target until the first week of December, while proceeds from the second private placement will be directed towards a 20,000-ft. drilling program that is expected to resume on the property in March or April.

The 1996 program is aimed at developing continuity of the high-grade, massive sulphide mineralization at the Niblack mine, Dama and Lookout zones, as well as expanding and proving up reserves at the Gold zone. The program will also test coincident, geophysical-geochemical anomalies that have not yet been drilled.

Teck will hold the right to earn a 51% interest in the Niblack project by completing a feasibility study and placing the project into production.

Abacus acquired a 100% option on the Niblack project by entering into two separate agreements with Barrick Gold (TSE) and Noranda (TSE). Under its agreement with Barrick, Abacus recently completed a required 10,000 ft. of drilling and must now issue Barrick a further 600,000 shares.

Barrick, which acquired its interest in Niblack through the takeover of Lac Minerals, also holds four separate options to purchase 4 million shares of Abacus. The first set of options for 1 million shares is exercisable at $1.00 per share by the end of this year.