Minnova to fund Pend Oreille

By spending $500,000 on exploration and development at the Pend Oreille lead-zinc project in Washington within the year, Minnova (TSE) will be granted the exclusive option to acquire Kerr Addison Mines’ (TSE) controlling interest in RFC Resource Finance (TSE), the project owner.

Kerr Addison holds 4.6 million shares, or 45.8% of RFC. When the option is exercised, Kerr’s $3.1 outstanding loan to RFC will be converted to a 3% net smelter royalty (NSR). The NSR would become effective two years after the project enters commercial production and would be capped at $3.5 million.

RFC purchased the Pend Oreille mine, including a 2,400-ton-per-day mill and surface structure, for US$1.25 million in 1990.