X-Cal negotiates with Amax Gold

Negotiations between X-Cal Resources (TSE) and Amax Gold (NYSE) are in progress, with the objective of combining property holdings in the Sleeper area of Humboldt Cty., Nev.

X-Cal holds a large package of ground southeast of Amax’s Sleeper mine property.

A draft agreement is expected to require X-Cal to fund initial exploration on the combined lands, as well as issue shares to Amax during an earn-in period. Amax would contribute use of the Sleeper mine’s production facilities (excluding the current reserve) to the joint venture.