A letter of agreement has been signed between Gowest Amalgamated (ASE) and Placer Dome (TSE) whereby Placer may earn a 75% interest in Gowest’s property in northeastern Ontario.
The property comprises 2,400 acres and adjoins Placer’s Detour Lake mine 125 miles northeast of Timmins, Ont.
On signing a formal agreement, Gowest will receive payments of $20,000 and Placer will spend $75,000 on exploration during the first year. Thereafter, for a period of four years, Placer Dome has the option of spending an additional $925,000 on exploration and paying Gowest $225,000. On completion of the above conditions, a joint venture would be formed with Placer holding 75% and Gowest 25%.
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