An option agreement has been reached by Canaco Mining Resources (ME) with Cambior Inc. (TSE) whereby Canaco may acquire a 45% interest in the latter’s Rouyn- Merger property located several miles east of Rouyn-Noranda, Que. Canaco may earn its interest by spending $2.5 million on exploration work over three years. The agreement calls for $500,000 to be spent by Sept 1, 1989, $1 million by Dec 31, 1990, and $1 million by Dec 31, 1991. If the company fails to earn the 45% interest, each 10% interest it does acquire will be convertible into a 2.5% net profits return should the property be placed into production.
Operator of the project is Cambior. For 1988, a drilling program representing 15,000 ft is planned.
In other news, Canaco reports it will spend an additional $200,000 on its other property interests, in the Quevillon and Dufresnoy areas. Incorporated in 1987, Canaco was recently listed for trading on the Montreal Exchange.
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