Varna, Nfld. Goldbar agree to Glover deal

Goldbar will act as operator and spend $2 million on exploration over four years, including a minimum of $500,000 in each year of the agreement.

The agreement requires Goldbar to pay Varna $500,000 upon signing and make additional annual payments of $100,000 starting Nov 30, 1990.

Also, Varna will take up 100,000 shares of the Newfoundland company when a formal agreement is signed and retain an option to purchase an additional 300,000 shares during years one and two at 50 cents each and a further 300,000 during the third and fourth year for 75 cents per share.

Through a private placement of 1.25 million shares at 20 cents each, Newfoundland Goldbar will strengthen its working capital position.

Referring to preliminary sampling which returned values of up to 0.55 oz gold per ton, Varna Chairman Gordon Barron says he is optimistic about the potential of the 13,000-acre Glover Island property where exploration is set to begin early in 1990.

Having defaulted recently on an option to earn a 50% stake in the Jackson’s Arm project, also in Newfoundland, Varna has relinquished its interest in the property to BP Canada. However, Varna says it still holds 80% and 100% on 12,000 acres lying adjacent to the Jackson’s Arm claims.

Varna says it has terminated its options to earn an interest in the Twin Lakes, Gold Button and Payka Lake areas of Manitoba.

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