Inco Gold buys Esso’s interest in Red Lake claims

A purchase agreement with Esso Resources Canada has been completed by Inco Gold for all of Esso’s interest in the Red Lake claims in northwestern Ontario held by the Wilanour partnership (Wilanour Resources 52.8%, Wilmar Mines 38.2% and Annco Mines 9%).

Inco Gold, a unit of Inco Ltd., says it has reached agreement-in-principle with Robert Fasken whereby Fasken may acquire 28.5% of Inco’s interest in these claims.

Inco Gold currently has a 67% interest in the Wilanour partnership claims, with the right to increase that interest to 70% by spending $1.1 million on exploration. The partnership will have the right to participate at a 30% working interest or to dilute its interest to a non-participating 15% royalty position.

A surface-drilling campaign is currently being conducted by Inco Gold on the claims. The company says it plans to explore the property throughout 1988 in an attempt to locate sufficient gold reserves to justify reactivating the partnership’s mining and milling operations.

Last year, Inco Gold acquired 51% of the outstanding shares (fully diluted this could be reduced to 35%) of Wilanour Resources.