Toronto junior Vega Explorations (CDN) has optioned its gold property in Jacobson and Riggs twps., northeast of Wawa, Ont., to Hemlo Gold Mines (TSE).
Under the terms of the agreement, Hemlo Gold can earn a 60% interest in the property by making a series of option payments totalling $3 million to Vega by Oct. 1, 1995. In turn, Vega has agreed to spend up to $2.5 million in work programs on the property.
Any amounts received by Vega in excess of its work commitments will be used for general working capital purposes.
If Hemlo exercises its option and earns a 60% interest, further costs will be shared on a proportionate basis. If either party is diluted to an interest of less than 15%, or if Vega does not participate in four successive work programs, that party will be diluted to a royalty of 1% of gross proceeds from production on the property.
Noranda Exploration, a unit of Noranda (TSE), has agreed to act as operator of the property during the option period.
Be the first to comment on "Hemlo Gold options Vega property"