Northern Abitibi acquires Que. options from Kinross

Alberta-listed Northern Abitibi Mining (NAMC) will acquire a portfolio of properties in Quebec from Kinross Gold (TSE).

Kinross currently holds these properties under option from Falconbridge (TSE). It acquired the options when it amalgamated with Falconbridge Gold, which itself held an option to purchase all of Falconbridge’s interests in the concessions.

NAMC will buy Kinross’ rights to the portfolio for $1.5 million plus 400,000 NAMC shares.

Featured are such advanced gold projects as the Barry Lake properties, held in joint venture with Beaufield Consolidated Resources (VSE), and the Callahan property in Val d’Or. The former comprises 19,000 acres of highly prospective claims in Urban and Barry twps.

Upon completion of the transaction, NAMC will control about 25 gold property interests in the Abitibi region. It will reactivate exploration on the Barry Lake properties as soon as practicable, in conjunction with Beaufield. The Beaufield-Falconbridge joint venture funded more than $7 million worth of exploration work in the Barry Lake area in the 1980s, which led to the identification of several gold zones. However, no significant exploration has been carried out since 1988.

The best results were obtained from the Zone 18 area of the Lac Rouleau property, where a drill-indicated mineral inventory of 550,000 tons grading 0.2 oz. per ton has been outlined.

The funds required for NAMC’s acquisition will be raised by a private placement of 8.7 million units priced at 20 cents each. A unit will consist of a common share and half a warrant. One whole warrant plus 50 cents will be required to buy an additional common share for two years.

Golden Rule Resources (TSE), NAMC’s parent, will subscribe to 5 million units, and Kinross will subscribe to 3.7 million.