Canadian Giant expands Newfoundland holdings

The acquisition increases the company’s property holdings on the Baie Verte Peninsula, one of the most active exploration areas in Newfoundland.

Among the properties involved in the deal are 31 claims adjoining the west boundary of the Rambler joint venture property, and 97 claims in the Gull Pond area, south of Springdale. Past work on the Gull Pond property, including trenching, geophysics and limited diamond drilling, has exposed a mineralized zone with gold values ranging from 0.09 oz to 0.96 oz gold per ton, the company says.

Joint venture partners are currently being sought by Canadian Giant for two of the recently acquired properties. The company expects to spend about $250,000- $300,000 exploring the new claim blocks this year.

As part of the agreement Canadian Giant will make option payments totalling $44,000 to a third party and arrange for further funding to continue exploration on the six properties. The claims are subject to a 2% net smelter return.

Cliff retains the right to earn back a 50% interest in any of the six claim groups. A spokesman for Canadian Giant said negotiations are under way with potential joint venture partners for two of the most promising properties.

The company also completed a private placement agreement with Cliff Resources involving 162,500 shares at 60 cents per share for total proceeds of $97,500.

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