Placer Dome and Lucero in Brazil

An agreement between Placer Dome and Lucero Resource Corp. will provide funds for acquisition of a gold property in Brazil.

The agreement calls for Placer Dome to spend $120,000(US) by the end of 1988 to acquire and explore a target located by Lucero in 1987. Placer Dome and Lucero will then hold 70% and 30% interests respectively in the project and will share future expenditures pro rata. The minimum position of either party upon dilution will be a 15% net profits interest.

Because of legal and corporate complications involved in the acquisition of the property, both companies are reluctant to disclose its name and location, saying only that it is in a well-known gold belt and has been mined locally over the past century. Lucero has spent about $50,000 on the project to date on consulting, prospecting and legal expenses. Negotiations with respect to the acquisition are proceeding at this time.