An agreement in principal has been reached between Gold Canyon Resources (VSE) and a unit of Noranda (TSE) for the funding of further expenditures on the Blue Dog gold project in Washington Cty., Idaho. Noranda will be issued shares of Gold Canyon in return for exploration expenditures on the property. In addition, by providing 25% of the project’s capital cost should it warrant production, Noranda will be issued further shares to bring its holding up to 60% of Gold Canyon’s outstanding stock.
The Blue Dog, previously a joint venture between Gold Canyon and Bradner Resources (VSE), is now 100% owned by Gold Canyon after the company agreed to issue two million treasury shares to Bradner in exchange for the interest.
Gold Canyon also renegotiated the original property deal which allowed the joint venture to earn a 100% interest in the property from Homestake Mining (NYSE). In return for 40,000 shares of Gold Canyon and US$10,000 cash, Homestake has agreed to relinquish its 40% back-in provision and has extended the deadline for a positive feasibility study to Sept. 1, 1994.
Reserves on the Blue Dog project were last reported at six million tons grading 0.025 oz. gold per ton.
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