Pacific Minesearch boosts interest in Howie gold bet

Pacific Minesearch has increased its potential ownership in the Howie gold project in North Carolina to 43.75% by purchasing the original 49.9% interest in the project held by Discovery West.

Pacific Minesearch issued Discovery West 500,0000 shares and share purchase warrants for a further 250,000 shares exercisable until February, 1992, at 70 cents per share.

Discovery West originally owned a 50% interest in the property, which was optioned as to 75% by Cominco American Resources in 1984, and optioned again in 1986 to Pacific Minesearch, which can earn 50% of Cominco’s position by spending $2 million by the end of 1989.

After the exercise of all options the interest acquired will represent 12.5% of the Howie project. This will be shared equally between Pacific Minesearch and Cominco American and will entitle the two companies to an $800,000(US) preferential payout of any proceeds from the property.

The acquisition is valued at $300,000, bringing Pacific Minesearch’s expenditures on the project to over $1 million. Another $1 million must be spent by the end of 1989 to earn its 43.75% interest.