North American, Dundee buy Kennco’s Vszza Twp. interests

The joint-venture partners have spent between $6-$7 million on this project, carrying out over 150,000 ft of diamond drilling which has indicated an open deposit in excess of 2.0 million tons grading 0.161 oz.

Removal of the buy-back clause held by Kennco clears the way for the financing of an underground program leading to eventual production, North American’s president, S. G. Hawkins told that company’s well-attended annual meeting this week. Several major firms are showing interest, he added.

Shareholders were also told that the joint-venture team is negotiating for a large spread of additional ground well east of the Vezza site covering airborne indications of gold-base metals. “We hope to sign this within a few days,” Hawkins said, adding that follow-up ground work would follow soon after.

Closely associated Tandem Resources (ME) has just made a $150,000 private placement for 468,750 shares of North American with warrants to purchase an additional 468,750 shares at 42 cents .

Argus Resources (ASE), in which North American holds 440,000 shares, will be carrying out an extensive program of exploratory drilling in the Northwest Territories, the meeting was told. To be funded by Equity Silver (TSE), this will likely start in April or May.

North American also holds some 420,000 shares of Frankfield Explorations (ASE), a company that Hawkins now heads and which is expected to become more active (see separate story).

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