Cove Energy Corp. recently announced several corporate developments including options on two former precious metals producers near Nelson, B.C., a private placement with a European financial institution.
President Richard McCrae said the company has optioned the Alpine mine, a former high grade gold producer near Nelson, and the Noonday mine, a high grade silver and base metals operation about 35 miles further north.
Although both mines have been inactive since the early l940s, rehabilitation of old underground workings is considered feasible and the company plans an aggressive program during the current field season.
The option agreement provides Cove with an unencumbered 100% interest in the properties, formerly controlled by a prominent U.S. family.
As part of the agreement, the company is required to spend $100,000 on development during l987, make staged payments over five years totalling approximately $300,000 and issue 150,000 shares.
Cove has also negotiated a private placement of 200,000 shares at a price of 70 cents per share with a Swiss- based financial institution.
Douglas McCrae was recently appointed to the board of directors. Mr McRae is an officer and director of several gold production and development companies including Granges Exploration Ltd., Breakwater Resources, Hycroft Resource and Development Corp. and Windflower Mining. He replaces former director John Parks.
Mr McRae has been granted an option to purchase 145,000 shares of the company at 70 cents per share. These announcements are subject to regulatory approval.
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