A letter of intent has been agreed to by Chelsea Resources (VSE) and Beardmore Resources (VSE) to enter into a joint venture for the exploration and development of the former’s Gold Hill property in Montana. The Gold Hill project is situated adjacent to the Spotted Horse gold mine, in which Chelsea has a 70% interest.
Beardmore has agreed to pay Chelsea $1 million(C), in cash and shares, to acquire a 50% interest in the property. The companies will become joint operators of the project.
The letter of intent, which is subject to regulatory approval, calls for Beardmore to spend the initial $1.25 million on a 3-phase exploration program expected to start up in March.
In other news, Gerald Harper and Francis O’Kelly have resigned from Chelsea’s board of directors. Ted Heideman of Louisville, Ky., has been named as one of the replacement directors. Also, Charles Bauer, general manager of the Spotted Horse mine, has been named manager of operations.
Also, the company reports it has agreed to renew a $500,000 convertible debenture with Lufer Corp. for one year, the debenture convertible at 60 per share and the renewal subject to regulatory approval.
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