Sunburst optimistic about re-activation

Aggressively seeking equity financing, Sunburst Exploration is optimistic that it can be re-activated as a dynamic junior mineral exploration entity in this current fiscal year.

Director T. Jensen reports the company has now re-structured participation in the gold project in Duprat Twp., Que. Sunburst’s participation in its residual 50% ownership has essentially been converted to a royalty interest equivalent to the greater of a 2% net smelter return and a 10% net profit interest.

As part of this transaction, Sullivan Mines will subscribe for 150,000 shares of Sunburst at $1 per share over a 2-year period starting when this agreement is finalized, expected this November, says Mr Jensen.

Sunburst has also re-negotiated the option agreement on the 63 Pickle Lake claims whereby the minimum work commitment will be reduced to $375,000 from $500,000 to vest its 80% undivided interest.

The company has negotiated acquisition of the former Tribag mine in northern Ontario in consideration for 200,000 treasury shares, subject to regulatory approvals. The vendor has retained a 1% net smelter return. Mr Jensen says though copper and tungsten are currently out of favor, Sunburst is confident this 100-claim former producer will be a worthwhile asset in the future.

Sunburst is also negotiating to acquire assignment of an option on a 71-claim block in Dieppe Twp., Que., immediately south of the Golden Pond project held by Inco Ltd. and Golden Knight Resources.