An exploration financing agreement has been finalized between Cominco (TSE) and two Quebec juniors Normetal Mining Exploration (ME) and La Sarre Mining Exploration (ME). The 3-year exploration agreement calls for Cominco to invest $6.8 million to earn a 61% interest in a large base metal property held jointly by the two juniors.
The 26,000-acre property is about 15 miles north of La Sarre, Que., in the Normetal mining camp.
Underlain by a belt of felsic and mafic volcanic rocks, the Normetal area hosts a past-producing copper-zinc-silver mine. Cominco is hoping to come up with a new polymetallic find on the recently optioned package of claims.
A private company called Norcom Resources has been formed by the partners to conduct all exploration work undertaken by Cominco on the Normetal property.
During the initial phase of the agreement, Cominco will invest a total of $2,325,000 in Norcom as well as purchase shares of Normetal. A second expenditure of $2,250,000 is planned, along with a third costing $2,250,000, for a total investment of $6,825,000. When the three phases of expenditures are complete, Cominco will control 61% of Norcom stock with Normetal and La Sarre together owning the remaining 39% interest. At that point, Norcom will own the property.
Exploration work is scheduled to start in May with Cominco acting as operator.
Be the first to comment on "Cominco, Normetal, La Sarre strike exploration agreement"