Parquet, Cache in option deal

The agreement calls for Cache to spend an aggregate of $3 million during a 3-year period on exploration work, and make payments to Parquet totalling $300,000. Cache will act as operator during the option period.

Cache may earn a 16% interest by spending $1 million by Dec 31, 1990; another 16% by spending an additional $1 million by Dec 31, 1991; and the remaining 18% by spending the final $1 million before Dec 31, 1992.

Once Cache acquires its 50% interest, a joint venture partnership will be formed, with Cache acting as operator. The option agreement is subject to regulatory approval.

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