Printer Friendly

European American Resources, Inc. Announces Letter of Intent With Homestake Mining Company.

CLEARWATER, Fla.--(BUSINESS WIRE)--Oct. 27, 1999--

A Letter of Intent has been signed between European American Resources Inc. (OTCBB:EPAR) ("EPAR") and Homestake Mining Co. ("HM")(NYSE:HM) to enter into a definitive Earn-in Exploration and Joint Venture Agreement covering mineral claims owned and controlled by both EPAR and HM, to be pooled within an agreed Area of Interest at Prospect Mountain, Eureka, Nevada.

The Area of Interest is adjacent immediately south of Homestake's Archimedes/Ruby Hill low-cost, highly profitable, open-pit gold operation.

The Joint Venture will be operated through Management Committee with Homestake Mining Co. ("HM") initially contributing and expending as operator two million US$ (2,000,000US$) to earn a 51% interest in the joint venture. Subject to Management Committee approval, HM will carry out and finance a Feasibility Study to determine the economics of constructing and developing a mining operation to profitably produce gold and/or other metals from the Joint Venture property. During this period HM will be responsible for all State and Federal taxes, maintenance fees and advance royalty payments required to keep the joint venture property in good standing

Upon the project being taken to production as recommended by the Feasibility Study, HM, as operator of the joint venture, can earn up to a 70% interest.

Exploration work on property by HM will commence upon signing of the definitive Purchase and Joint Venture Agreement anticipated by both parties to be as soon as practically possible.

A spokesman for the company stated, that he believes the agreement is a perfect fit for both parties - HM could in the near future replace on going gold production from adjacent Archimedes operation and add new resources from the enlarged property base resulting from HM's acquisition of the Prospect Mountain joint venture position. EPAR, within the "alliance and/or partnership" with a world renowned operating gold mining company strengthens its corporate strategy to carry on future growth as an US based, precious metal resource company.

Disclaimer: In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. The Company's ("EPAR") performance and financial results could differ materially from those reflected due to general financial, economic, regulatory, political conditions or additional factors unknown to the Company at this time, as well as more specific risks and uncertainties such as set forth in documents filed with the SEC. Given these risks and uncertainties, any or all of these forward-looking statements may prove incorrect. Current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements. The Company has no intent, and disclaims any obligation, to update any such factors or forward-looking statements to reflect future events or developments.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Oct 27, 1999
Previous Article:RSL COM Interconnects Frame Relay Networks in Canada and the U.S.
Next Article:AirTran's New 717 Aircraft Completes Route Proving Test; Aircraft Enter Route System Ahead of Schedule.

Related Articles
Homestake Announces Special Meeting of Shareholders.
Homestake Mining Company Completes Acquisition of Prime Resources Group.
Homestake Purchases the Marymia Project in Western Australia From Resolute Limited and Its Joint Venture Partners.
Homestake Mining Company to Acquire Argentina Gold.
Beloyan Investment Securities Inc. Announces Investment Opinion on EPAR; Initiates Coverage of EPAR With a Strong Buy With a 6-Month Price Target of...
European American Resources Inc. Announces the Closing Date of the Definitive Agreement with Homestake for 1/31/00.
European American Resources, Inc. Announces Special Board Meeting to be Held On Saturday, February 5th, 2000, in Clearwater, Florida.
EPAR Announces: Homestake Mining Company Waives All Due Diligence On Joint Venture Agreement.
European American Resources, Inc. Announces The Receipt of the Required End of Year Report.
European American Resources, Inc. Announces That Drilling and Exploration has Commenced on its Prospect Mountain Eureka Nevada Joint Venture Property.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters