Chase Resource Corp.: BHP Option Over Batangas, Philippines Projects Terminated.VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--April 1, 1997--CHASE RESOURCE (TSE:CQS CQS - Center for Quality Services CQS - Concept Query Services CQS - Consolidated Quotation System CQS - Customer Quality Service.) Mr. Ian Rozier, President announces that BHP Copper Inc., a division of BHP Co. Ltd. of Australia, has not exercised its option agreement Option agreement A form that an options investor opening an option account fills out guarantees the investor will follow trading regulations and has the financial resources to settle possible losses. to become Operator of, and to earn a 51 percent interest in, Chase's mineral properties in the Province of Batangas Batangas (bätän`gäs), city (1990 pop. 184,970), capital of Batangas prov., SW Luzon Luzon (l zŏn`), island (1990 pop. 30,797,458), 40,420 sq mi (104,688 sq km), largest, most populous, and most important of the Philippine Islands., the Philippines. An important port on the Calumpan River near its mouth on Batangas Bay, it has a large oil refinery and serves a fertile farm area noted for its fruits, cacao, and coffee., Philippines, which include the Taysan, El Paso, Archangel Archangel, city, RussiaArchangel: see Arkhangelsk, Russia.archangel, in religionarchangel (ärk`ānjəl), chief angel. They are four to seven in number. Sometimes specific functions are ascribed to them. and other projects. The option was inherited by BHP when it took over Magma Copper Company in 1996. BHP retains earn-in and first right of refusal options over other Chase properties outside of the Batangas F.T.A.A. area as well as properties of Delta Gold Mining Corporation.BHP continues to hold 15 percent of the outstanding shares of the Company. Under the November 1995 agreement, BHP's right to representation on the Board of Directors of Chase is dependant on it maintaining a 10 percent shareholding in the Company. In light of the proposed amalgamation of Chase and Delta and the dilution it represents to BHP's equity position, the Board has agreed to amend this threshold to 7.2 percent. In a related development, the Company and BHP have terminated an option agreement they held in joint venture to earn up to 100 percent in various exploration areas in Aurora and Nueva Viscaya Provinces in northeast Luzon, from Omni Mining and Development Company. Chase and BHP were participating in the venture on a 30:70 basis. BHP, as operator of the project, has advised Omni that it will not proceed with further expenditures on the properties. Chase is not prepared to maintain the BHP option on its own and accordingly has concurred with the termination of the option. The Company is in negotiations with Omni with respect to certain portions of the property package but no definitive terms have been reached. The Company continues to work on its extensive portfolio of projects in the Philippines and on the Cikondang Gold Mine in West Java. CONTACT: Chase Resource Corporation Mr. Ian Rozier, 604/ 685-6851 604/ 685-6493 (FAX) E-mail: ir@chaseresource.com |
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