Shareholders of Trader Resource (TSE) unanimously approved an offer to exchange 15 million shares for interests in two Ontario mineral properties held by Royal Oak Mines (TSE).
Royal Oak now owns over 50% of Trader’s issued and outstanding common shares, while Trader holds a 50% interest in the 23,520-acre Mikwam gold property and a 100% interest in the Papoose Creek project.
The transaction was endorsed by Trader’s former president Harvey Stark, who said the properties offer “excellent exploration potential to develop a significant mineral property and the opportunity to re-establish (Trader) as an exploration company.”
The Mikwam claims cover a 23-mile portion of the Casa Berardi belt, about 12 miles west of the Casa Berardi gold deposit in Quebec owned by Inco and Golden Knight Resources. Over $3.5 million has been spent to date on the property, and four areas with gold intersections have been outlined. A 10,000-ft. drill program is being planned, with work to begin in the second quarter of this year.
The 4,920-acre Papoose Creek property is in Fawcett and Asquith twps., Ont., and is reported to cover five miles of favorable stratigraphy similar to that which hosts the Fort Knox gold property in the same area. On this property, airborne geophysical data will be compiled followed by summer mapping. Trader’s new board includes Royal Oak President Margaret Witte, three other Royal Oak officers, and Jon Fell of Switzerland.
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