Black Hawk buying Keystone

Toronto-listed Black Hawk Mining plans to acquire an interest in the Keystone project near Lynn Lake, Man., from DCC Equities.

The purchase price consists of five separate considerations including: 10.6 million common shares; a 10% net profits interest (NPI) in Black Hawk’s share of Keystone cash flow; a net smelter return varying from 1% to 3% on Black Hawk’s Minago nickel project in Manitoba; a 1% net smelter return on its Knox nickel-copper-cobalt project in Maine; and a 5% NPI in the Redstone nickel project in Ontario.

Cazador Explorations (VSE), which is earning a 50% interest in Keystone from DCC, waived its right of first refusal on the sale of the interest. (See “Cazador pursues Keystone funding,” T.N.M., June 7/93.)

Black Hawk is waiting for regulatory approval and is about to call a meeting to obtain shareholder approval for the acquisition, said Chairman Gordon Bub.