Northern Abitibi buys stake in Douay gold bet

Calgary-based Northern Abitibi Mining (ASE) and Golden Rule Resources (TSE) have signed an agreement whereby Northern Abitibi will purchase a 50% interest in Golden Rule’s Douay gold property, in Joutel and Douay twps., Que. Subject to regulatory approval, Northern Abitibi plans to purchase its 50% interest in the Douay bet by issuing 719,358 of its common shares, valued at 35 cents per share, for a total consideration of $251,775. The purchase price was based on an independent evaluation contained in a report by geologist R.D. Cruickshank. The Northern Abitibi claims are adjacent to another gold joint venture owned by Inco (TSE), Societe d’Exploration Miniere Vior (ME) and Cambior (TSE). The latter companies are continuing to explore the potential of a gold discovery on their claims.

Golden Rule currently holds about 5.1 million shares of Northern Abitibi, representing about 72.3% of the company’s issued and outstanding shares. Both companies have common management.

Last year, Golden Rule restructured most of its exploration activities in Quebec, and several of its other property interests were sold to Northern Abitibi.

Meanwhile, the board of directors of Northern Abitibi has granted incentive stock options to its officers and employees for an aggregate of 350,000 shares. These options are exercisable on or before Aug. 1, 1995, at a price of 18 cents per share.