Equinox-Technigen explore Maude Lake gold property

Equinox Resources has entered into an agreement with Technigen Corp., giving Technigen a right to acquire up to 40% of Equinox’s interest in the Maude Lake gold property in Ontario.

Under a joint venture agreement signed Oct 9 with Maude Lake Gold Mines, Equinox acquired the right to a 60% interest in an 18,000-acre gold property near Matheson, including the 5 Zone gold deposit containing estimated drill-indicated reserves of approximately one million tons grading 0.204 oz gold per ton.

Under the Equinox-Technigen agreement, which is subject to regulatory approval, Technigen will provide $2 million in program funding prior to Feb 28, 1988, will share pro-rata in further exploration and development expenditures and will issue to Equinox shares of Technigen valued at 40% of the value of Equinox shares issued to Maude Lake at each stage.

Equinox will be operator of the program at all stages and will have a right of first refusal with respect to the disposition by Technigen of any of its interest in the property.

Assuming a positive feasibility study can be completed by midsummer 1988 and a decision is then made to commence construction of a mill, commercial production could commence on the property by late 1988. Equinox is entitled to 91-94% of first cash flow until payback, then will share net cash flow pro-rata with Maude Lake.