Kerr Addison and Minnova form joint venture

Kerr Addison Mines (TSE) and its subsidiary, Minnova Inc. (TSE) will form a joint venture to explore the 250,000 hectares of exploration property held by the two companies. The joint venture will be formed effective Oct 1. Each company will contribute its respective currently-held exploration properties, and Minnova will become the operator.

Minnova President Ian Bayer says the company plans to focus exploration on properties near its existing operations where it has a good understanding of local geology. Last year Minnova spent almost $6 million on surface exploration near its existing operations. Bayer says he hopes to see that figure increase to between seven and eight million for this year. Kerr Addison’s exploration offices in Sudbury, Val d’Or and Vancouver will be closing as a result of the joint venture, he added.

The program will be managed out of Minnova’s present regional offices in Chapais and Rouyn-Noranda, Que; Thunder Bay, Ont; Vancouver, B.C., and Reno, Nev. The joint program will allow a more effective allocation of exploration resources, and give each company greater exploration exposure. All future exploration property acquisitions for the two companies will be made by the joint venture. But, opportunities to acquire developing or operating mines will continue to be pursued individually by Kerr Addison and Minnova.

Exploration areas around existing Minnova operations and development projects at Opemiska, Lac Shortt, Lac Dufault, Val d’Or, Winston Lake, and Samatosum are excluded from the joint venture. Minnova will continue to conduct intensive exploration at these properties on its own.