Their 50% interest in a Red Lake, Ont. gold property has been sold by The Coniagas Mines, and Phoenix Gold Mines, to McFinley Red Lake Mines for $5 million in cash, the two companies report.
In addition, Coniagas and Phoenix will receive a 10% net profits royalty entitlement, limited to a maximum of $5 million and payable only after McFinley recovers all of its preproduction costs, including property acquisition expenses.
As well, Coniagas and Phoenix will receive share purchase warrants totalling a combined 250,000 shares of McFinley, at a price of $7.75 per share, for a 2-year period to May 31, 1989.
Interests covered by the transaction of 7.14% and 42.85% to Coniagas and Phoenix respectively, equate to $714,280 and a 1.4% net profits royalty to Coniagas and $4,285,000 cash and 8.6% royalty entitlement to Phoenix.
McFinley says drill-indicated reserves on the property, (N.M., Apr 6/87) total 890,000 tons grading 0.19 oz gold per ton.
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