The transfer of ownership in the Flat gold property will result in Oregon Resources (VSE) owning 100% of the Alaskan project where it intends to spend about US$1.5 million on exploration over the next several years. Fairbanks Gold (VSE) recently agreed to transfer its ownership in the property to Oregon Resources in exchange for 5.2 million treasury shares of Oregon.
As a result of the share transfer, and assuming a previously announced private placement of 1.5 million shares is completed, Oregon Resources will have about 12 million shares outstanding of which Fairbanks will own about 43%.
A major Alaskan native corporation has the right to acquire up to a 30% working interest in the property by paying the relative percentage of expenditures incurred by Oregon up to that point. Fairbanks also has a back-in option that would allow the company to acquire a 19% interest in the property under the same terms as the native corporation (and up to 34% if the native corporation does not opt to participate).
The companies expect to release details of the 1990 exploration program shortly.
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