Tanqueray options B.C. perlite mine

Calgary-based junior Tanqueray Resources (ASE) has acquired an option to buy the Frenier perlite mine in central British Columbia.

The mine, near Clinton, has proven reserves of more than 450,000 tonnes with more than one million tonnes in the probable category.

Perlite is used in mortars, acoustic tiles and boards, as well as in low-density bricks, tiles and ceramics. It is also used as a soil-conditioner, carrier for pesticides and herbicides and in fertilizer. The company has agreed to pay the vendor $15,000 and 12,000 Tanqueray common shares and 12,000 warrants for the option. Each warrant entitles the holder to buy one Tanqueray share at $1.50 per share until Dec. 15, 1994. The option is valid until Dec. 31, 1994 but may be extended until Dec. 31, 1995, if Tanqueray pays the vendor an additional $20,000 before Dec. 31, 1994. Tanqueray can buy the mine at any time by paying the vendor $150,000 and issuing 75,000 shares and 75,000 share purchase warrants. The warrants will be valid for two years from the date of issue and can be exercised at a price 20% higher than Tanqueray’s shares as of their date of issue. The mine, now closed, operated profitably from 1983 to 1987. Tanqueray plans to mine and crush a few hundred tonnes initially to re-establish the material on the market and determine the feasibility of reopening the mine. All reserves are minable by open pit. Perlite does not require processing or separation; it is mined, crushed, dried, sized and expanded. The Canadian perlite market is currently supplied by imported material. Perlite ore sells for $90-110 per tonne in the Vancouver market. Expanded and specialized grades sell for up to $700 per tonne. The company estimates mining and transportation costs to be between $50 and $70 per tonne. Tanqueray estimates an initial annual market in western Canada for 3,000 to 10,000 tonnes of ore. The total Canadian market is between 40,000 and 60,000 tonnes per year.