A letter of intent has been signed between Dundee-Palliser Resources (TSE) and exploration partners VSM Exploration (ME) and Serem-Quebec which will allow VSM/Serem to earn a 50% interest in Dundee’s interests in properties in Grevet and Mountain twps., near Matagami, Que. VSM and Serem are currently active in the area, where on their own land holdings they have outlined preliminary reserves of 6.1 million tonnes grading 9.77% zinc, 0.52% copper and 38.4 grams silver per tonne.
The deal involves three property options: Laroche (142 claims), Coda (35 claims) and Fancamp (63 claims). Dundee has the right to earn a 100% interest in the Laroche and Coda options, and a 75% interest in the Fancamp option.
To earn the 50% interest, VSM/ Serem must make the following option payments: Laroche, $40,000 by Sept. 28; Coda, $40,000 by Dec. 4; and Fancamp, $25,000 by Jan. 23, 1991.
VSM/Serem must also make exploration expenditures totalling $750,000 during a 2-year period. During the first year of the agreement, VSM/Serem, which will act as operator, must spend $375,000.
The agreement is subject to board of director (on both sides) and regulatory approval.
Serem is owned by a French government agency.
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