Placer Dome, Golden Crescent in unique exploration deal

In a rather unusual deal, Golden Crescent Resources (ASE) has signed a letter-of-intent with Placer Dome Inc. (TSE) giving Golden Crescent the right to earn a 49% interest in no less than 26 exploration properties in Ontario belonging to the big Vancouver-based international operator.

Placer, in turn, gets the right to back into Crescent’s gold properties at the west end of the famed Kirkland Lake camp, including both the Golden Gate and Crescent mines, two former modest producers.

The Placer Dome holdings involved in this deal include its Talbut Lake, Skebo Lake and Tarp Lake properties in the bustling Pickle Lake area, its Key Lake and Highway groups in the Geraldton area, the Harper Lake property in the Detour Lake area and its the Dome Twp. property at Red Lake, together with 19 other properties.

Golden Crescent can earn a 49% participating interest (or 30% net profits interest) in this total package of Placer properties by spending $7 million on exploration over 3 years, with Placer the operator.

In addition, Placer will purchase 600,000 treasury shares of Golden Crescent at 50 cents per share, with the right to purchase 1,000,000 treasury shares per year for a period of five years at prices ranging from $1.50 to $7.50.

Placer, in turn, gets the right to back into Crescent’s Swastika- Kirkland properties at the initiation of a feasibility study or at the end of any 2-year period in which $300,000 has not been expended on Golden Crescent’s properties. Too, Placer has the right to appoint one director to the Golden Crescent board.

Exploration is planned to commence when final documentation of this unique deal is completed, says H. Vance White, Golden Crescent’s vice-president.

]]>