Committee Bay regains namesake project

Vancouver — Committee Bay Resources (CBR-V) will re-acquire Gold Fields‘ (GFI-N) 55% interest in the Committee Bay project in Nunavut.

Under the deal, Committee Bay Resources has agreed to issue 7 million shares priced at $1.25 apiece to Gold Fields. After two years, or as soon as Committee Bay spends $10 million on exploration, Gold Fields will have a one-time right to forego the share conversion and maintain its 55% interest. To do so, the major must agree to finance exploration and development to the tune of 150% of whatever Committee Bay has spent.

Gold Fields earned its 55% interest in the project by spending more than $7.5 million on exploration since mid-2003.

Edmonton-based Committee Bay is currently drilling on its namesake project and intends to spend $8 million this year alone.

Gold mineralization in the Committee Bay greenstone belt occurs in iron formations and mafic-ultramafic volcanic sequences. Committee Bay Resources controls 85% of the 300-km-long belt.

The company has 28.8 million shares outstanding and recently traded at 70. The market capitalization is $20 million.