Aurun Mines Inc., a wholly- owned subsidiary of Aurun Mines Ltd. has reached an agreement with Placer U.S. regarding Aurun’s Huntington gold prospect on Little Bald Mountain, Nev.
Under the terms of the agreement, Placer has acquired an option to purchase Aurun’s JH mineral claims, also known as the Huntington mineral prospect.
In order to obtain title to the claims, Placer must pay Aurun a total of $210,000(US) over four years and conduct up to $370,000 of exploration over the same period.
If Placer exercises the purchase option, Aurun will retain a 2% net smelter return royalty and a 15% net profits royalty on all mineral production from the claims.
Aurun also has the right at the time of feasibility to acquire up to a 10% joint venture interest in the mining operations. It is also entitled to receive advance minimum royalties of $100,000 in 1990, $150,000 in 1991 and $200,000 each year thereafter.
In other company news, President John A. Chapman says that the company has made an application to list its shares on the Vancouver Stock Exchange. At present Aurun trades on the Alberta Exchange at about the 50 cents level.
For its first quarter ended May 31, Aurun posts a cash position of $3,015 compared to the restated figure of $162,367 posted in the comparable period a year earlier.