Calgary-based Octan Resources (ASE) has agreed to acquire Terra Mines’ (TSE) mill and silver properties at Camsell River in the Northwest Territories, the company said recently.
Subject to regulatory approval, Octan will acquire Terra’s Norex, Silver Bear and Camsell River properties which comprise 11 mineral leases and one mineral claim covering about 7,000 acres.
Also, in return for a 500-ton-per- day mill, and 100-man trailer camp, Octan will issue to Terra 1,250,000 class “A” common shares.
The mineral leases are about 40 km southwest of the Bonanza West claim acquired by Octan, earlier this year and the Bonanza East lease which the company is acquiring from El Bonanza Mining Corp.
“The mill acquisition removes the biggest obstacle to placing Octan’s Bonanza orebody into production,” said President Martin Burger. After encountering high grade silver on surface, Octan anticipates making a production decision in the first quarter of 1989.
“With these acquisitions, Octan’s management feels that the corporation now has the majority of silver deposits in the Northwest Territories’ Eastern Great Bear Lake region.
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