Belmoral, Yorbeau complete agreement

Completion of an agreement whereby Belmoral Mines will spend $10 million to acquire a 50% interest in Yorbeau Resources’ Astoria gold property in northwestern Quebec, and $5 million to acquire Yorbeau shares and warrants representing more than a 50% interest in the company, has been announced.

Under the agreement, which has received shareholder and regulatory authority, Toronto-based Belmoral purchased 6.25 million common shares of Yorbeau at 70 cents per share and 6.25 warrants at 62.5 cents each. The warrants will be exercisable for up to two years on a one- for-one basis at $1 per share.

Belmoral will spend $10 million to further explore the Quebec junior mining firm’s Astoria property located just south of Rouyn- Noranda, Que., and about 60 miles west of Belmoral’s Val d’Or, Que., operations. Each expenditure of $100,000 will give Belmoral the right to purchase 37,500 warrants at 62.5 cents each, exercisable for up to two years on a one-for-one basis at $1 per share.

Belmoral produced about 52,000 oz gold in 1987 from its two mines at Val d’Or. Planned at Astoria is a deepening of the Western shaft from 500 ft to 1,500 ft. The Astoria property currently hosts about 1.4 million tons of reserves (all categories) grading 0.18 oz gold per ton.

In other news, under a separate agreement, Belmoral will spend up to $1.5 million to explore Yorbeau’s Vauper property. By spending that amount, Belmoral will earn a 50% interest in the property.