Surf Inlet seeks partner to explore Matachewan bet

A new company may be joining the exploration team in the search for gold at the Princess Royal Island claims in British Columbia’s Skeena division, shareholders of Matachewan Consolidated Mines (TSE) were told at their annual meeting.

A news release circulated the morning of the meeting revealed Surf Inlet Mines (VSE), which has an option to earn a 100% interest in the property, is negotiating with Kerr Addison Mines (TSE) regarding a possible joint venture for exploration and development of the Princess property.

The same release also contained the news Halley Resources (VSE) plans to acquire, subject to regulatory approval, control of Surf Inlet through the purchase of one million shares of the company from two Surf Inlet directors.

Under its agreement with Surf Inlet, Matachewan will retain a 15% interest in the net proceeds of production. The property is a former gold-silver-copper producer.

Plans already announced by Surf Inlet call for exploration spending of about $1.84 million this year on the property.

In other news, Matachewan recorded net earnings in 1987 of $21,318 compared with $2,376 for 1986, the increase attributed to funds received in the form of option payments on the Princess property. Working capital at the end of 1987 stood at $385,102.

At Matachewan’s Hislop-Guibord claims in the Matheson area of northern Ontario, Noranda Exploration (TSE) may earn a 50% interest in the property by spending $1.38 million on exploration work. The agreement was signed in April of this year.

Also, Falconbridge Ltd. (TSE) has earned a 70% interest in the company’s Baldwin-McVicar property in the Howe Sound area of British Columbia.

Elected to Matachewan’s board of directors were P. H. McCloskey (president), H. P. McCloskey, R. D. McCloskey, A. G. Mathew and A. D. Hellens.