Golden North, Corona deal is terminated

An interim agreement allowing Golden North Resource (TSE) to acquire interests in the Bralorne and Cariboo Bell properties in British Columbia, and other property interests from Corona Corp. (TSE) has been terminated.

The Toronto Stock Exchange decided not to accept the deal because of a disagreement on the evaluation of the property interests.

Golden North Chairman John Godfrey said the agreement specified an acquisition price of about $11.6 million which was to be settled by the payment of $279,000 in cash and the issuance of almost two million shares of the company. The TSE concluded the maximum value of the interests amounted to $9 million.

Godfrey said the deal was subject to its being accepted for filing by the TSE. He said Corona did not elect to negotiate or amend the agreement.

Golden North has about 5.8 million shares outstanding, plus options outstand ing on another 470,000 shares. Corona currently owns 1.45 million shares of Golden North, or about 23% on a fully diluted basis.

Meanwhile, Golden North reports a 25,000-ft drilling program on its wholly-owned Nickel Plate properties near Hedley, B.C., is well under way. Initial focus will be on the Canty skarn deposit, which the company said has drill-indicated, open pit reserves of 656,800 tons grading 0.15 oz gold per ton and which is located a half-mile from Corona’s operating Nickel Plate gold mine.

Golden North budgeted $2.4 million for 1988 exploration and development for its Nickel Plate properties; the company says it wants to increase the budget to expand and accelerate this work through to February, 1989.