Toronto-based Chutine Resources (VSE) has concluded a formal option agreement to acquire the remaining 51% of the shares of Minera Sanex S.A., it does not already own. Chutine formerly held 49% of the Mexican company Minera Sanex, which owns the 7,000-acre San Antonio de la Huerta copper- gold property in the Sonora province of Mexico.
Under terms of the option, Chutine will issue one million shares from treasury and advance a loan of up to US$1 million to Minera Sanex. The funds will be used to eliminate Sanex’s existing debt and for development work on the copper-gold property.
The option may be exercised upon payment of US$6 million up until June 30, 1993, subject to certain interest rate adjustments. At the time of exercise, the optioner must take at least one-half of the exercise price in Chutine shares, with the balance to be paid in cash. Additionally, there will be a net smelter return reserved in favor of the optioner, capped at US$3 million.
Chutine and Sanex are completing a compilation of all technical information prior to seeking bids for a production feasibility study which could lead to a 4,000-ton- per-day copper mining operation.
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