Vancouver — A lien filed by the BC Ministry of Revenue was the driving force behind International Wayside Gold Mine’s(IWA-V) missed option payment to Mosquito Consolidated Gold Mines (MSQ-V) last December.
The $100,000 payment was required under an 1999 option to purchase agreement covering 100% of the Island Mountain and Mosquito Creek properties, plus 50% of the Cariboo Gold Quartz claims near Wells, BC. However, the Ministry filed a demand for payment letter totaling $54,302 against Mosquito on Dec. 13, 2001. Wayside subsequently made arrangements to pay the amount in early January and went ahead a paid $10,000 of the $100,000 payment required under the option to Mosquito.
A newly completed $101,500 private placement paves the way for Wayside to make all the scheduled payments. The financing comprised 1.02 million units priced at 10 each. A unit holds one share and one warrant, which is exercisable at 10 for 1-year.
Once the placement is approved by the Canadian Venture Exchange, Wayside plans on paying the Ministry in full and will place $35,967 in trust until the lien against the properties are removed.
The payment allows Wayside to continue earning a 100% stake in the Island Mountain and Mosquito Creek claims, as well as a 50% interest in the Cariboo Gold Quartz claims by making cash payment totaling $4 million by Dec. 31, 2003. The properties make up a part of Wayside’s Cariboo gold project in north-central British Columbia. The Frank Callaghan-led junior has a second option agreement allowing it to earn the other 50% interest in the Cariboo Gold Quartz claims by spending $500,000 per year and completing a positive feasibility study.
The Cariboo gold project comprises 153 sq. km near the town of Wells, 85 km east of Quesnel. The project centres on the historic Cariboo Gold Quartz, Island Mountain-Aurum and Mosquito Creek mines, which collectively produced more than 1.2 million oz. from 1933 to 1987.
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