A legal dispute related to the Goldboro gold project in Nova Scotia has been settled out of court by Onitap Resources (TSE) and Exploration Orex (ME). (T.N.M., Dec. 17/90. Orex, which initiated the legal proceedings this past summer, agreed to drop its lawsuit against Onitap, Narex Ore Search Consultants and the president of Onitap and Narex, Karl Naert.
Under a purchase agreement drawn up in 1989, Orex agreed to pay Onitap $8 million for full ownership of the property, which it had been exploring according to an option agreement.
The two sides have agreed to amend the original purchase terms. The agreement now calls for a total purchase price of $8.75 million, of which $1 million had previously been paid under the original purchase agreement, $50,000 was paid by Orex on reaching the settlement, and a further $200,000 is payable by Orex within 60 days.
The balance of the purchase price is payable over a maximum of 9 years, subject to the requirement of a prepayment of $300,000 when the decision is made to place the property into commercial production and again when commercial production begins.
In addition, Orex is entitled to satisfy up to $2.5 million of the outstanding balance between July 1, 1991, and Jan. 1, 1994, through the issue of Orex shares to Onitap.
The amended agreement is subject to regulatory approval.
Orex President Michel Roy said he hopes to renew an exploration program on the property in the near future. The company is also hopeful of being able to announce soon the name of a project partner for Goldboro.
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