Canyon Resources and JCI in $4.5 million exploration joint venture in Ethiopia.GOLDEN, Colo.--(BUSINESS WIRE)--Feb. 12, 1996--Canyon Resources Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CYNR), a Colorado-based mining company, today announced that its 90%-owned subsidiary, Canyon Resources Africa Ltd., has entered into a joint venture agreement with JCI JCI Journal of Clinical Investigation JCI Johnson Controls, Inc. JCI Junior Chamber International JCI Joint Commission International JCI Japan Concrete Institute JCI Journal of Communication Inquiry JCI Johannesburg Consolidated Investment Company Limited Limited (JCI) to finance gold exploration on Canyon's exploration licenses in Ethiopia. By funding $4.5 million in exploration expenditures on three licenses, JCI would earn a 51% joint venture interest. JCI Limited, with 100 years of African mining experience, is a leading South African mining company which produces approximately 1.8 million ounces of gold per year from a mineable reserve of over 80 million ounces. Canyon will be the manager of the joint venture through the $4.5 million of exploration financing and JCI earn-in of its 51% interest. Thereafter, JCI will be the joint venture manager. JCI has the optional right to increase its ownership to 65% of any particular license by financing the lesser of an additional $4.5 million of expenditures or a bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. on that license. The joint venture agreement is subject to approval within 60 days by the Exchange Control Department of the South African Reserve Bank The South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought. . Canyon is actively conducting exploration on its 60 square- kilometer Megado Serdo property, which is located adjacent to the 2 million-ounce Lega Dembi Mine in the Adola Gold Belt of southern Ethiopia. Canyon is in the final stage of license negotiations with the government of Ethiopia on the 108 square-kilometer Meleka Abeba area, also in the Adola Gold Belt. In addition, Canyon has filed a license application covering 1,700 square-kilometers of the Tigray greenstone green·stone n. Any of various altered basic igneous rocks colored green by chlorite, hornblende, or epidote. greenstone Noun NZ a type of green jade used for Maori carvings and ornaments province in northern Ethiopia. Each license contains numerous areas of gold production from stream gravels by local miners and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. bedrock geology for sizeable bedrock gold deposits. "Canyon Resources is pleased to have JCI join us in exploration for sizeable gold deposits on our exciting exploration licenses in Ethiopia. Canyon's objectives are to discover and develop gold mines similar in significance to the 2 million-ounce Lega Dembi Mine. The Adola Gold Belt has just begun to be explored, and there should be opportunities for several such deposits on our properties," said Richard H. De Voto De Vo·to , Bernard Augustine 1897-1955. American historian and critic noted for his studies of the impact of the West on the American mind. , president. Canyon produces gold and silver from the Kendall Mine in Montana and industrial minerals (diatomite) from a mine/plant complex in Nevada. The company is currently constructing the Briggs Mine in southeastern California, with first gold production anticipated in the second half of 1996, and is in the permitting and development stage at the 8.2 million-ounce McDonald gold deposit in Montana. CONTACT: Canyon Resources Corp., Golden Cheryl A. Martin, 303/278-8464 |
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