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Buffalo Gold Red property agreement
2005-08-03 16:40 ET - Property Agreement
See Property Agreement (C-BUF) Buffalo Gold Ltd
The TSX Venture Exchange has accepted for filing an option agreement dated April 15, 2005, between Buffalo Gold Ltd. and Gitennes Exploration Inc. pursuant to which Buffalo has acquired an option to acquire a 60-per-cent interest in Gitennes's option to earn a 100-per-cent interest in the Red property. Gitennes acquired its option from D.L. Cooke and Associates Ltd. and others pursuant to an arm's-length option agreement dated Sept. 3, 2004.
The property consists of 103 claim units covering an area of 2,575 hectares in north-central British Columbia. The property is an exploration stage mineral resource property with the principally targeted resources being copper and gold.
In order to exercise the company's option and earn a 60-per-cent interest in the Gitennes option, the company must: (i) make a cash payment to Gitennes of $30,000; (ii) make total cash payments to the underlying vendors of $100,000; and (iii) incur a total of $600,000 in exploration expenditures on the property by July 15, 2007. Upon earning its 60-per-cent interest in the Gitennes option, the company and Gitennes shall associate and shall be deemed to have associated themselves as a single purpose joint venture for the purpose of exercising the Gitennes option. The company will be the operator of the joint venture. The company and Gitennes will split all further payments and expenditures under the underlying agreement in the following manner: (i) the remaining $50,000 cash payment due to the underlying vendors will be made by the company; (ii) all share payments due to the underlying vendors (being a total of 250,000 common shares) will be made by Gitennes; and (iii) all remaining property expenditures required under the underlying agreement (being $1.4-million) will be split on a pro rata basis.
There is no finder's fee payable in respect of the transaction.
Insider/pro group participation: None -- Gitennes and the underlying vendors are at arm's length to the company.