Zahavy elevuating purchase of Getty’s 50% in Favourable Lake

Alberta-listed Zahavy Resources says it has been advised by Getty Resources that a third party has made an offer-to-purchase Getty’s 50% interest in the Favourable Lake joint venture property located north of Red Lake, Ont.

Getty has advised Zahavy of its intention to accept the cash- equivalent offer in the amount of $3,609,000.

However, Zahavy says in accordance with the terms of the joint venture agreement, Zahavy has the right of first refusal.

Zahavy’s board of directors is evaluating the proposal and will decide whether Zahavy will purchase Getty’s 50% interest.

Zahavy says this offer will not effect the first phase of the already agreed upon surface and underground exploration program which includes drifting, raising and 25,000 ft of underground drilling.

Six drill holes have been completed thus far in the surface program and they have all intersected the vein structure. The best hole to date is No 45 which returned a 5.7 ft section of a combined gold-silver equivalent to 0.36 oz gold per ton.

Three of the four holes drilled on the No 20 Vein Zone hit the vein strucutrre. Additional Vein Zones 13, 14 and 15 are currently being drilled.

Meanwhile, Getty is still awaiting Zahavy’s decision. Vic Bradley, chief financial officer of Getty, says Zahavy has a 60-day time frame which started in late February and will expire in late April in which to make a decision.