A new deal between Teck Corp. and Newfields Minerals could see Teck raise its stake in the junior company to 12.7%. Under the deal, stockpiled ore taken from the Teck- Hughes property in Kirkland Lake, Ont., by Newfields will be shared equally.
Also, off-property costs related to gaining access via Lac Minerals’ No 5 shaft at the neighboring Lake Shore mine will be credited to expenditures towards Newfields earn-in price on the Teck-Hughes property. The Lake Shore mine workings will be used to access deep portions of the adjacent Teck- Hughes property. Lac is renting use of the shaft to Newfields on a fee basis.
In order to earn a 50% interest in the Teck-Hughes property, Newfields must spend $5 million on exploration and will issue 200,000 common shares to Teck. Teck has also agreed to purchase an additional 200,000 shares before Jan 4, on the open market at a price of not less that $3.10 per share. The purchases, combined with other options, could increase Teck’s stake in the company to 12.7%.
Additional drill intersections from the property include 8.7 ft grading 0.12 oz gold, 5.2 ft grading 0.11 oz and 4.6 ft assaying 0.2 oz.
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