RJK earning option in Sask. properties

To earn its interest, RJK must issue, to each of Lenora and Mary Ellen, 750,000 Class B subordinate- voting shares, spend a total of $2.5 million on exploration by Dec 31, 1991, and pay each company $500,000 by Dec 31, 1991. (The companies may accept more Class B shares of RJK at $3 per share in place of the cash payments.)

At the time of the agreement, Lenora and Mary Ellen each had a 30% interest in the Box mine property (Cominco is the other partner in the project), and were 50/50 partners in the New Athona property.

Shortly after the agreement was completed, Lenora, Mary Ellen and AXR Resources amalgamated (N.M., Jan 16/89) under the name Greater Lenora Resources (TSE). Exchange ratios were set at one share of Greater Lenora for four Lenora shares, six Mary Ellen shares and five AXR shares.

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