) 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,"
' president and chief executive Lori McClenahan said.
"The 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
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 commence immediately.
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.