In a move to increase its interest in the Spectrum property to 100%, Columbia Gold Mines (VSE) has renegotiated its option agreement with property owners Northair Mines (TSE) and Calnor Resources (VSE).
Drilling on the property last year encountered two zones of gold mineralization and the company plans to conduct further drilling this year. The Spectrum property is in the Iskut River area of northwestern British Columbia.
The previous agreement gave Columbia the right to earn a 70% interest in the property.
Columbia has spent about $700,000 on the property to date and can earn the 100% interest by spending a total of $1.7 million prior to Dec. 31, 1995, as well as making a payment of $275,000 cash and 100,000 shares by March 1, 1992.
Calnor and Northair will receive a scaled net smelter return royalty on the property after the first 100,000 oz. of gold production from the property.
Columbia can earn a 100% interest in the nearby Hawk property as well. To earn the interest, the company must spend $1 million on exploration by Dec. 31, 1995, and pay a total of $100,000 on a staged basis to Dec. 31, 1992. Underlying owners, Newhawk Gold Mines (TSE) and Northair Mines, will also receive a scaled royalty of 1-3% after the first 100,000 oz. gold are produced.
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