Under the proposed deal, Falco and Impala must pay $400,000 in cash and spend $2.5 million on exploration by March 20, 2004, to earn a combined half interest in the project.
MacDonald Mines will receive $100,000 on signing, plus monthly instalments of $10,000 for nine months thereafter. Also during that time, $350,000 worth of exploration must be completed. Afterwards, Falco and Impala will have the option of making six additional monthly payments of $10,000 and spending $400,000 on exploration by Dec. 20, 2002. The two can then make 15 additional monthly payments of $10,000 and complete another $1.75 million of exploration work before March 20, 2004, at which point a 50-50 joint venture with MacDonald will be established.
Falco and Impala also have the option, upon signing the deal, of acquiring 5 million MacDonald shares at the prevailing market price. If all payments and expenditures are made by March 20, 2004, the two can acquire another 5 million shares at current market prices.
Once a joint venture is formed, Falco and Impala would have a further option to acquire an additional 20% interest in the Casson Lake property by funding a bankable feasibility study and guaranteeing production.
Previous grab-sampling along a 5,000-metre mineralized strike length returned average grades of 1.73 grams combined platinum, palladium and gold per tonne.
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