Toronto-based Noranda Exploration has elected to increase its participation in a Montana polymetallic property by exercising its right to acquire shares of Vancouver- listed Crown Butte Resources.
Under an October, 1987, agreement, Noranda has decided to exercise a first share option for 250,000 shares of Crown Butte’s common stock at $1.80 per share.
Crown Butte says the Noranda announcement was accompanied by a cheque for $450,000 to be held in trust pending shareholder approval. To discuss the share option, Crown Butte has scheduled a special shareholders meeting for Feb 26.
According to Crown Butte, the proceeds are earmarked for 1988 field activities at the company’s New World mining district gold- silver-copper property in Park County, Mont.
With a 9,500-ft reverse circulation now complete, Noranda is scheduled to update a New World reserve estimate which currently stands at 869,000 tons grading 0.16 oz gold, 0.75 oz silver and 1.12% copper per ton.
As operator, Noranda can acquire a 60% interest in Crown Butte by exercising two more share purchase options and funding 25% of the capital costs required to bring the property to a production mode.
President David Rovig says Noranda has submitted a $25,000(US) property payment along with a statement for 1987 exploration activities showing a final total of $247,902.
A 14,000-ft drilling program is scheduled to begin this spring, says Walter Nash, Noranda’s director U.S. and Foreign Exploration who was recently appointed to the Crown Butte board of directors.
“We are just waiting for the snow to melt,” he said.
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