Central Crude takes option on Moss Lake

Under the terms of the agreement, Central Crude must spend $4 million over a 5-year period to earn a 51% interest. The company must also make cash payments to Tandem and Storimin totalling $450,000 of which $50,000 is payable within 12 months of signing a formal agreement. Central Crude will also assume the payment of advance royalties of $25,000 per year to the original property vendors.

Noranda Exploration will be the project operator. Noranda’s affiliate Hemlo Gold Mines holds a controlling 41.2% interest in Central Crude. Exploration is expected to begin in early 1990 pending completion of a formal agreement.

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