Abitibi receiving exploration funds

Abitibi Resources will receive between $1 million and $2 million for exploration work on properties, including the company’s Recher- Casa Berardi property, under an agreement signed with Sofimines 1987 and Co., Ltd. Partnership.

In return, Abitibi will issue to Sofimines shares equal to the quotient obtained by dividing the portion of the agreed amount paid to the company after a closing by the price per share which shall be equal to 130% of the average closing price per share of that class of the company’s capital stock traded on the vse and me for 20 trading days immediately preceding the date of the final prospectus of Sofimines.

Also, Abitibi will issue to Gestion Soficorp, the general partner, an additional number of shares equal to 5% of the total amount of shares issued to Sofimines. The agreement is subject to regulatory approval.

An agreement in principle has been reached with Lacana Mining Corp. and American Ore. The deal, if completed, will see American trade its 22.8% interest in the M.E.X. joint venture project in New Brunswick for Lacana’s 40% interest in the Golden Neighbor and Metsantan properties in B.C. The deal will also see American receive $50,000.

The B.C. properties are located in the Toodoggone area. The Metsantan ground is south of the Golden Rule Resources claims where economic gold grades have been assayed in trenchs. The Golden Neighbor is located 2 km northeast of the former producing Baker mine. American will be the project operator. Other partners in the B.C. projects include Murphy Oil (30%) and Canacord Resources (25%). Canacord must spend $500,000 by Feb 28, 1989, in order to earn its interest.