NEWS ROUNDUP — Deak exercises Astoria option

Toronto-based Deak Resources (TSE) has exercised its option to acquire Yorbeau Resources’ (TSE) Astoria gold mine and adjoining property near Rouyn-Noranda, Que.

Deak has applied for the necessary regulatory approvals required to put the deposit, where reserves stand at 1.18 million tons grading 0.2 oz. per ton into production.

To complete the acquisition, Deak issued Yorbeau a $200,000 promissory note payable over 50 months and a warrant to purchase 500,000 Deak shares at 60 cents per share within two years.

Yorbeau will retain a 40% net profit interest (NPI) in the property until it has received $3 million. At that point, it will receive a 2% net smelter return (NSR) royalty with a minimum annual payment of $200,000 for five years. At any time between Jan. 21, 1994 and Dec. 31, 2000, Yorbeau will have the option to convert either its NPI or NSR into a 40% working interest in the property.