Shares in Vancouver-based Rimfire Minerals (RFM-V) shot up a nickel, or more than 5%, to $1 in early trading on Nov. 18, after the junior announced an exploration alliance with Newmont Mining (NEM-N).
Under the deal, the pair will split the cost of a winter program of data compilation aimed at defining gold targets in western Canada. Initial plans call for $300,000 worth of equally funded exploration in 2004.
Longer-term, any properties acquired by the two companies will be subject to a 50-50 joint venture. The major can boost its stake to 60% by funding $1.5 million worth of work over three years; another 15% can be obtained by completing a bankable feasibility study.
If Newmont fails to take a 60% stake its half-share is passed to Rimfire, with the major retaining a net smelter return royalty. Rimfire will act as operator of any project until Newmont achieves a 60% interest.
Rimfire’s project portfolio includes several prospective gold and silver properties in British Columbia and the Yukon.
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