Queenston Mining Inc. Reaches Agreement With Aur Resources Inc. On The Sale Of Duck Pond.Business Editors TORONTO--(BUSINESS WIRE)--Dec. 6, 2001 Queenston Mining Inc. (QMI-TSE) ("Queenston") has signed a purchase and sale agreement with Aur Resources Aur Resources Inc. (TSX: AUR) is a Toronto, Ontario, Canada, based, international mining company active in the acquisition, exploration, development and mining of mineral properties. Inc. ("Aur") regarding the sale of its 50% interest in the Duck Pond A duck pond is a pond for ducks and other water birds. Often such ponds are artificial and ornamental in nature, in public parks for example. Sometimes they may be less ornamental, in a farmyard for example. Some duck ponds are purposefully built for the shooting of duck. copper-zinc-lead-silver-gold project located in central Newfoundland. Aur has signed a similar agreement with Queenston's joint venture partner Thundermin Resources Inc. ("Thundermin"). Under the terms of the agreement, Aur has agreed to pay Queenston $3,000,000 cash for its right to earn a 50% interest in the Duck Pond project under the original Noranda Mining and Exploration Inc. option agreement. The sale is scheduled to close on or before April 1, 2002. Conditions of the purchase and sale: 1. Consent by Noranda. 2. Queenston to extend the existing $1,500,000 loan to Thundermin to the closing date. 3. Aur - Thundermin transaction requires approval by Thundermin shareholders. 4. Queenston to receive a favourable fairness opinion Fairness Opinion A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. Notes: A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. regarding the transaction. Prior to Thundermin obtaining shareholder approval of its transaction with Aur, Queenston retains the right to receive and evaluate unsolicited proposals from third parties for the sale of its 50% interest in Duck Pond. The Queenston and Thundermin joint venture was formed in 1999 to explore and evaluate the Duck Pond project owned by Noranda. Under the terms of the Noranda agreement the joint venture retained the right to earn a 100% interest in the project by incurring $1,400,000 in exploration expenditures and making a production decision by June 30, 2003. To date, the joint venture has expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. approximately $ 4,000,000 on the project which includes the completion of a detailed 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 two deposits containing proven and probable mineral reserves totaling 5,215,568 tonnes grading 3.3% Cu, 5.8% Zn, 0.9% Pb, 59 g/t Ag and 0.8 g/t Au. On completion of the Duck Pond sale to Aur, Queenston will have working capital of approximately $9,000,000 and will remain debt free. In 2002, Queenston plans to focus exploration efforts on its gold assets in Ontario. These include the 50-50 joint venture with Franco-Nevada Mining Corporation Limited in Kirkland Lake Kirkland Lake, mining town, E Ont., Canada. An important gold-mining center, gold was discovered there in 1911 and again in the 1980s at Harker. The mining of iron ore and tourism are two other important industries. and the 100% owned Lake Abitibi Lake Abitibi (French: lac Abitibi) is a lake in northeastern Ontario and western Quebec, Canada. The lake is separated in two distinct portions by a short narrows, making it actually 2 lakes. Its total area is 931 km², and net area 903 km² [1]. project. In Kirkland Lake the partnership is exploring for high-grade gold deposits in a proven mining camp and at Lake Abitibi, diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral will begin to test the gold potential of a new property covering a relatively unexplored, major deformation zone. |
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