Fort Knox eyes Sudbury (May 28, 2001)

Vancouver — Fort Knox Gold Resources (FNX-T) has teamed with mining contractor Dynatec (DY-T) in an attempt to acquire five of Inco‘s (N-T) properties in the Sudbury Basin. Inco has accepted the proposal as a basis for negotiation.

Under the proposal, Fort Knox has rights to a 75% interest in the properties, whereas Dynatec would receive 25%. In return, the newly formed joint venture would fund future exploration and development expenditures; issue Fort Knox shares to Inco; pay Inco a net smelter royalty; grant to Inco a 1-time buy-back right to acquire a controlling interest in any deposits discovered. The properties are prospective for nickel, copper and platinum group elements.