Campbell selling phosphate property

Newphos Ltd., a private Ontario company has agreed to buy the properties for $1 million cash and a 4% revenue royalty. The royalty will reduce to 2% after $5 million has been received.

Under the agreement, Newphos must complete a production feasibility study of the property within 24 months or return the joint venture interest to Campbell.

Campbell acquired its initial interest in the Martinson property in 1982 and two years later entered into a joint venture with Sherritt Gordon Mines (TSE). Sherritt contributed the neighboring Cargill property in return for a 50% interest.

While no work has been done on the properties in recent years, they are thought to have economic potential, according to Campbell which admitted that the high capital costs involved in developing the properties was a major factor in its decision to sell. Campbell is owned 26% by Toronto affiliate Northgate Exploration (TSE).

]]>