Forbex, Brex in option deal

An agreement has been entered into between Forbex Mining Resources and Brex Exploration whereby the latter may acquire up to a 50% interest in the Lake Fortune West property in Dasserat Twp. in northwestern Quebec during the next four years, Forbex President Edouard Bedard reports.

The first phase of the agreement calls for Brex to spend $300,000 and $700,000 during the first and second years, respectively. Brex must also pay $25,000 upon signature of the agreement and a further equal payment by the end of the first year. All first-phase requirements having been met, Brex will acquire a 30% interest.

The second phase calls for Brex to spend a total of $1 million during the third and fourth years. Also, Forbex will be given the choice of either a $25,000 payment from Brex or 25,000 shares of Brex.

When Brex has acquired a 50% interest in the property, it will have acquired the managing rights.

Should Brex not proceed into the second phase, it may retain its 30% interest by participating on a pro- rata basis of its interest in future expenditures on the property. Should Brex choose not to participate, its interest will be diluted to zero when Forbex will have spent $1 million in additional work on the property.

The agreement is subject to the approval of the Quebec Securities Commission and the Montreal Exchange.

In other news, Forbex reports two drills are in operation on the Stadacona East property in northwestern Quebec, where Forbex and Cambior Inc. are involved in a joint exploration agreement.