Placer Dome to gain stake in Alaskan property

Teryl Resources (TRC-V) and the U.S. subsidiary of Placer Dome (PDG-T) have struck a deal whereby the latter can earn a 60% interest in the Westridge property in Alaska.

Placer Dome U.S. can earn its interest by paying Teryl US$50,000 this year, US$75,000 in 1998, US$100,000 in 1999, US$125,000 in 2000 and US$150,000 per year thereafter, as well as by completing exploration and development work to the feasibility stage.

Placer Dome U.S. also has an option to purchase an additional 10% interest by paying US$10 million upon completion of a feasibility study.

The 52-claim Westridge property is between Amax Gold’s (AGX-T) producing Fort Knox deposit and the True North joint venture of La Teko Resources (LAORF-Q) and Newmont Gold (NGC-N).

Vancouver-based Teryl will also grant Placer Dome U.S. the option to buy another 5% interest if it guarantees Teryl’s share of production financing.

Placer’s subsidiary will begin a US$150,000 work program, of which US$100,000 will be spent at Teryl’s property and US$50,000 indirectly on Placer’s adjoining property.

Placer’s future work commitment at Westridge will increase by US$50,000 per year, to a maximum of US$400,000, during the term of the lease.