Power negotiating joint ventures

With two joint venture agreements arranged, junior mining firm Power Explorations (TSE) is looking to negotiate similar deals with other mining companies to bring its various properties in northwestern Ontario into production.

President Harry Hodge told shareholders at the annual meeting Power officials are negotiating joint ventures with eight separate companies, and that news announcing the completion of some of these deals should be forthcoming before October.

Power recently formalized a joint venture agreement with Ravenroc Resources (VSE) (a company controlled by Murray Pezim’s Prime Capital) covering exploration of the Opapimiskan Lake property. Ravenroc may earn a 50% interest in the property by spending $2.55 million over four years and making cash payments totalling $250,000.

The junior company has also signed a letter of agreement with Santa Maria Resources (TSE) giving the latter the right to earn a 50% interest in the Neawagank Lake property by spending $2 million on exploration.

Power has interests in 39 properties in the Pickle-Opapimiskan Lakes area of northwestern Ontario, making it one of the largest property holders in that area. The company’s property interests also extend to the Dryden area in the same part of the province.

A total of $8.6 million was spent by Power in 1987 on exploration, which included 165,000 ft of drilling. The company reports mineral reserves with economic potential were partially delineated last year on four of its properties: Karl- Zeemel, Kasagiminnis Lake, Opapimiskan Lake and Dryden.

Power has about 14.6 million shares outstanding. Its largest shareholder is sister company Moss Resources (ASE), of which Hodge is also president. Power, with a 15% interest, is the largest single shareholder in junior oil firm Canadian Futurity Oils.

Elected to serve on Power’s board of directors were Hodge, Wayne Beach, Ronald Cairns, John Hurley and Walter McKee.