St. Elias Mines (CVE:SLI) Tuesday has entered into an option agreement with 88 Capital Corp. over a 60 percent interest in the Chance F mineral concession which adjoins St. Elias' Tesoro Project in Peru.
"St. Elias continues to
negotiate a variety of property deals that we are confident will create
additional value for shareholders," St. Elias Mines' president and chief executive Lori McClenahan said.
optioning of the Chance F Claim not only allows another company to fund
initial exploration but will also provide valuable geological
information regarding the Tesoro Gold Project area."
The Chance F
Claim is a strategic claim that adjoins the southern end of the 100
percent-owned Tesoro Project where St. Elias is currently drilling to
delineate gold resources.
Geological information, together with Titan
24 geophysical data and satellite imagery, confirms that structural
lineaments which are coincident with gold mineralization on Tesoro
Project extend onto the Chance F Claim.
The initial exploration
program on the Chance F Claim will consist of, but is not limited to,
the interpretation of satellite imagery acquired to exact specifications
and geological mapping and sampling. The program is scheduled to
Under the terms of the option agreement, 88
Capital Corp. can acquire a 60 percent interest in the Chance F Claim
for cash payments of $550,000 to St. Elias, issuing 1 million 88 Capital
shares and incurring $1 million in exploration expenditures on the
property over a three-year period.
88 Capital Corp.'s first year
commitment under the option agreement is to pay $50,000 to St. Elias,
issue 250,000 common shares and incur $150,000 in exploration
expenditures on the property.