Multinational gets $1m. from Japan

A large Japanese trading house will provide $1 million for exploration and development of Multinational Resources’ Toodoggone gold property in northwestern B.C. Two Canadian subsidiaries of Nissho Iwai Corp. are putting up the money for a 20% undivided interest in the project. The companies already hold a 20% equity interest in Multinational through common share purchases made in 1985.

After the exploration program is completed, Multinational and Nissho will enter into a formal joint venture agreement with future expenditures shared on a pro rata (80/20) basis. According to President William Clancey, negotiations are still under way for Du Pont’s Baker mill which would be used to process any feed from the property. He expects these negotiations to be concluded within the next month. Multinational was given the right of first refusal for the plant when it negotiated the property agreement several years ago. Mr. Clancey says it would cost about $350,000 to rehabilitate the mill which is rated at 100 tons-per- day.

He confirms the company will follow the recommendations of its consultant for the upcoming program. Dr N. C. Carter has recommended 5,300 ft of drilling in the first phase to define reserves in the B zone. This would involve an expenditure of $270,000 which would be followed by a second phase costing a similar amount. The latter would be predicated on results from the first part of the program. Underground drifting will be considered when the programs are completed. **********