Comox earning major stake in Harrison gold project

The recent closing of a joint venture agreement allows Pacific Comox Resources (VSE) to earn up to a 76% interest in the Harrison gold project, about 60 miles by road from Vancouver, B.C.

Earlier this year, the company entered into a letter of agreement with project owners Bema Gold (TSE) and Abo Resource (VSE) to acquire the joint venture interest. The deal is subject to certain closing conditions. The subject clauses were removed in early July when Pacific Comox reached an agreement with the underlying mineral and surface rights holders and advanced $50,000.

To earn a 76% interest, Pacific Comox must spend $5 million over five years; issue 100,000 shares; make additional staged cash payments to the underlying owners totalling $90,000; and enter into a convertible debenture (1994) for $575,000 convertible into its common shares.

After Pacific Comox earns its interest, Abo would retain a 3% NSR, capped at $3 million.

More than $7 million has already been spent on the Harrison gold project which at last report contained preliminary reserves of five million tons grading about 0.1 oz. gold per ton. The deposit is believed to be amenable to bulk underground mining methods.

The property is accessible by road, but is located near a tourist destination and recreation area that may make permitting a mine project challenging. Pacific Comox’s proposed work programs would be aimed at locating new reserves, upgrading current reserves, and evaluating mining and milling methods.