Jascan, Atlantic each get another $6 million (US)

The final payday came in for partners Jascan Resources (ASE) and Atlantic Goldfields Inc. (COATS). Each company has received $6 million(US) as the final payment from the sale of their interest in the Noxon silver-copper deposit to Montana Reserves Co. Noxon, located in Montana, hosts reserves of 142 million tons grading 2.1 oz silver and 0.78% copper per ton. Prior to the final payment made on Dec 30, each company had already received cash payments of $4 million(US) from Montana Reserves. In addition to the final payment, each company was also paid $167,178 in accrued interest. After the final payment, Jascan and Atlantic have a combined cash reserve in excess of $20 million(US) which will be used for acquisitions.

Jascan and Atlantic previously announced a plan to amalgamate subject to shareholder and regulatory approval (N.M., Nov 7/88).

Production at Noxon, which is operated by Noranda Minerals, remains subject to permitting, financing and a positive decision from a feasibility study. The project could be in production within a 3- to 5-year period, Jascan says. Annual mining rates will likely range from 3.5 million to seven million tons.

Once in production, Jascan and Atlantic will each receive a production royalty of 10 (US) per ton of rock mined. At seven million tons per year, that translates to a yearly payment of $700,000(US) to the companies.