The dispute over ownership of the White River claims was recently settled, joint venture partners Akiko Gold Resources (VSE) and Gold Giant Minerals (VSE) report.
The claim group consists of 720 units totalling 28,000 acres about 20 km east of the Hemlo gold camp in northwestern Ontario.
Gold Giant and Akiko have an option to acquire the claims, subject to the right of Hemlo Gold Mines (TSE) to earn a 50% interest by spending $500,000 and making cash payments of $250,000 to the staking group.
Hemlo Gold has spent about $156,000 on the property. In 1991, the company is reported to have made a high-grade gold discovery on the Sugar vein. Akiko and Gold Giant plan to meet with Hemlo Gold to plan a summer exploration program.
Under the terms of the settlement, the staking group will provide a 0.5% net smelter royalty (NSR) of its total 3% NSR to certain Broad Horizon Trust shareholders. Gold Giant and Akiko must pay the same shareholders $75,000. The two junior companies must also make staged cash payments totalling $250,000 and issue 200,000 shares starting one year from the termination of the action through to 1997.
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