Eastmain acquires BHP’s prospects

Eastmain Resources (ER-T) is acquiring BHP Minerals International’s interests in a portfolio of gold and base metal exploration projects in Eastern Canada.

In return, BHP will receive a 3% net smelter return (NSR) royalty and 1.5 million share purchase warrants. A third of the warrants will be exercisable at $1.25 until May 31, 1999, a second third will be exercisable at $2 until May 31, 2000, whereas the remaining warrants will be exercisable at $2.75 until May 31, 2001. Eastmain can buy one-third of BHP’s NSR royalty for $1 million.

The portfolio features potential base metal horizons within the mining camps of Bathurst, N.B., and Matagami, Que. The Bathurst group consists of several volcanogenic-massive-sulphide projects, including the Railroad prospect and a claim block next to Breakwater Resources’ Caribou Mine.

Also included in the acquisition are eight properties on the western extension of the Abitibi greenstone belt in Ontario.