Two companies with substantial land positions in the Rainy River area of northwestern Ontario have signed an agreement that will see each hold a 4.9% working interest in the other’s properties.
Nuinsco Resources (TSE) will grant Western Troy Capital (ASE) a 4.9% interest in properties in Richardson and Potts twps., 50 km northwest of Fort Frances, while Troy will grant an equivalent interest in its properties in Menary Twp., immediately north of Potts Twp.
The agreement replaces an earlier 10% working interest that Troy held on Nuinsco’s property; rather than fund 10% of recent exploration expenditures, Troy elected to take a decreased interest in the property. Troy also receives $275,000 cash, of which $110,000 will be spent exploring the Menary Twp. claims.
The Nuinsco claims cover 42 sq. km and include the copper-nickel mineralization reported in September (T.N.M., Sept. 25/95). Troy’s property covers 24 sq. km, where a set of gold-bearing quartz veins has been trenched on surface. Small-scale crushing and milling have, to date, yielded about 350 oz. gold. Troy now has sufficient cash to drill electromagnetic conductors on the property.
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