A joint venture agreement between Pacific Sentinel and Homestake Mineral Development gives the latter the right to earn a 60% interest in the Churchill gold project located 38 miles west of Churchill, Man.
Homestake, the Canadian arm of Homestake Mining Co. of San Francisco, will earn its interest by making staged payments of $115,000 and property expenditures of $2.1 million by January, 1993. After this, expenditures will be shared 60% by Homestake and 40% by Pacific Sentinel.
Homestake has committed to drilling a minimum 6,500 ft on the property this year. Work is planned to start in the next few weeks.
Pacific Sentinel acquired its 100% interest in the 12,900 acres of mineral claims by agreement with Douglas Forster and Robert Dickinson, both directors of the company. The agreement calls for $98,392 to be repaid to the vendors for work expenditures completed on the property and the staged allotment of up to 400,000 shares during the project’s development period. A further 400,000 shares will be allotted to the vendors upon commercial production.
Both agreements are subject to regulatory approval.
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