Placer Dome buys Eastfield shares

A private placement agreement between Eastfield Resources (VSE) and Placer Dome (TSE) gives the latter the right to acquire up to 40% of the outstanding shares of Eastfield.

Subject to regulatory approval, Placer Dome has agreed to purchase an initial 300,000 shares at $1.10 per share and has an option to purchase an additional 300,000 shares at $2 by Jan 1, 1989. The company has the right to a further purchase of 600,000 shares at a minimum $4 per share by Sept 30, 1989, of which 300,000 shares will come from Eastfield’s directors.

Eastfield is planning a $400,000 exploration program on its Indata gold project north of Fort St. James in northern B.C. A 7,000-ft drill program is planned to test a 2,600- ft-long geochemical/geophysical anomaly which was the target of limited drilling last season. Imperial Metals (VSE) is expected to fund 30% of the Indata project to maintain its participating interest.