NASDAQ-listed Canyon Resources will allow BHP Minerals International Exploration (NYSE) to explore some 900,000 acres of its properties in western Montana.
BHP can earn a 51% interest in the properties (50% in the case of gold deposits) and, over the next six years, will spend US$2.5 million on exploration. It will also assume operatorship of any mines developed. Most of the claims were formerly owned by the timber division of Anaconda. Canyon acquired them through its acquisition of Addwest Gold in 1990 and later bought the mineral rights from Western Energy, a subsidiary of Montana Power (NYSE). The rights are privately held and most of the acreage is free of any royalty. The surface rights are owned by Plum Creek Timber (NYSE). Canyon approached BHP with the opportunity because it was unable to finance exploration of such a large area itself. The agreement does not include Canyon’s interest in the Seven-Up Pete joint venture near Lincoln, Mont. Based in Salt Lake City, Utah, BHP is a wholly owned subsidiary of BHP of Australia.
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