Vancouver-based Major General Resources (MGJ-V) will begin exploring for base metals on the Stewart property in the Bathurst area of New Brunswick.
The company can acquire the 355-acre property by issuing 155,000 shares to its private owners over five years. The company must also spend $400,000 on exploration by Dec. 31, 2000. The agreement is subject to a 1% net smelter return royalty (NSR), which Major General can buy back for $1 million.
The company is also exploring the adjacent Nepisiguit property. As part of an option agreement with Rio Algom (ROM-T), Major General can acquire this property by spending $1 million on exploration over five years, $100,000 of which must be spent by year-end.
Rio can retain a 2% NSR or earn back 55% of the property by completing a feasibility study that allows a production decision.
Major General recently completed a 170-km, high-power, deep-sensing electromagnetic survey over the Nepisiguit and Stewart properties. Results are pending.
The Nepisiguit property is underlain by the Tetagouche Formation rocks that host past producers Brunswick No. 6 and Heath Steele.
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