An ownership dispute over the White River project has been settled, allowing Akiko Gold (VSE) and Gold Giant Minerals (VSE) to form an exploration joint venture with Hemlo Gold Mines (TSE).
The project, 20 km east of the Hemlo camp in northern Ontario, covers 702 claims totaling about 28,000 acres. Akiko Gold and Gold Giant have the exclusive right to earn a 100% interest from the staking group under a 1991 option agreement. These rights were confirmed in an amended agreement recently signed by each member of the staking group, Akiko and Gold Giant in Thunder Bay, Ont.
The settlement calls for cash payments and share issuances to the staking group from Akiko and Gold Giant in stages over the next few years. Hemlo will also make staged cash payments to the staking group, which retains a 2.5% net smelter return. Broad Horizons received US$75,000 paid equally by Akiko and Gold Giant, and retains a 0.5% net smelter return royalty on any production from the claims.
Hemlo Gold has the exclusive right to earn a 50% interest in the White River claims, including the high-grade Sugar Vein gold occurrences, by spending $500,000 on exploration by September, 1994.
The formal agreements governing work on the property are being completed. In the meantime, exploration programs will be carried out by Hemlo Gold with Akiko and Gold Giant, beginning in late July.
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