An undisclosed senior mining company recently signed a letter-of-intent option agreement on the Lone Star property and other mineral claims held by Arbor Resources (VSE) in the Klondike gold camp of Dawson, Yukon.
If the agreement is ratified in late August, and all approvals are granted, the senior mining company could earn a 55% interest in the Lone Star property by spending $3 million and making semi-annual payments.
Additional terms include an initial private placement in 100,000 Arbor shares at $1 per share, with the entire proceeds to be spent on the Lone Star property. The senior company would also have options to buy an additional 1.8 million Arbor shares at various prices in stages during a 6-year period. Arbor President Richard Hughes said the senior also proposed to spend $2 million to earn a 55% interest in additional mineral properties in the Klondike gold camp held by Arbor and associated companies Wealth Resources (VSE), Faith Mines (VSE), Klondike Reef Mines (VSE), Rise Resources (VSE), Ebony Gold (VSE), Sultan Minerals (VSE), Cream Silver Mines (VSE), Emperor Gold (VSE) and Aurizon Mines (TSE).
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