Noront gets nod from Central Crude as exploration arm

Noront Resources (VSE) is the company that has been chosen by Central Crude (VSE) to acquire an interest in certain of the properties recently acquired by Crude in the Mishibishu, Swayze and Hemlo areas. (N.M., Sept 17/88).

Options being granted include up to a 50% interest on 245 claims in four well-regarded separate Mishibishu groups. Subject to regulatory approval, Central Crude is to be reimbursed for its costs and receive 200,000 common shares of Noront, with a commitment from the latter to spend a minimum of $1,000,000 on exploration over three years.

In addition, Noront has been granted an option by Crude to earn up to a 50% interest on 200 claims in the Swayze greenstone belt southwest of Timmins, Ont., by spending a minimum of $175,000 on exploration over the next two years and reimbursing Central Crude’s staking costs. Noront also agrees to spend a minimum of $150,000 over three years and reimburse staking costs to earn up to a 50% interest in 22 claims adjoining the southwest of Hemlo Gold Mines at Hemlo.

To assist in funding its initial exploration, Noront is arranging a private placement of up to 1,500,000 shares at 40 cents with the likelihood that the Hemlo Gold Inc. (TSE) — Noranda (TSE) team, which is financing the parent Central Crude firm, will participate directly in Noront’s financing.

Also, it is expected that on completion of this new financing, Richard E. Nemis, Central Crude’s president, will become Noront’s chief executive officer.