By issuing 3.7 million shares to Surf Inlet Mines (VSE), Newfields Minerals (TSE) will receive a 25% interest in the Princess Royal Island polymetallic prospect, 100 miles south of Prince Rupert, B.C. An additional commitment of $1.5 million for exploration over the next year will allow Newfields to earn up to 50% of the property. The Princess Royal is a gold- silver-copper property. Two former producers — The Surf and Pugsley mines — were active on the property until 1981, when Cominco (TSE) and Placer Dome (TSE) completed an unsuccessful drill program and abandoned their claim.
In addition, Newfields President Dan Clark will purchase five million shares at a price of 3 cents per share for proceeds of $160,000. The private placement will go ahead only if management agrees to acquire a further 2.5 million shares by June 30 and if Newfields’ creditors agree to accept 20 cents for each dollar owed to a maximum of $60,000.
The company has also announced that all existing stock options have been cancelled and replaced by 1.6 million new options at 4 cents per share exercisable over a 2-year term.
All the transactions are subject to shareholder approval at the Newfields annual meeting June 22.
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