September 4, 1997 Agreements Re negotiated |
INTERNATIONAL WAYSIDE GOLD MINES LTD. ("IWA-V;IWYGF-L")
- Agreements Re-negotiated
The Board of Directors of International Wayside Gold Mines Ltd. ("Wayside") report that they have re-negotiated the Agreements of April 15, 1997 and August 26, 1997, concerning the purchase by Wayside from Mosquito Consolidated Gold Mines Limited ("Mosquito") of the 0ther 50% of the Cariboo Gold Quartz Mine Property, 100% of Island Mountain Gold Mine Property and 100% of Mosquito Creek Gold Mine Property, all located at Wells, British Columbia. There three contiguous properties and the ground staked by Wayside encompass 12,000 acres and cover 17.5 square miles to form the Cariboo Gold Project. Recorded production from the Cariboo Gold Project and surrounding property is 2,600,000 ounces of placer gold and 1,200,000 ounces of lode gold.
Mosquito and Wayside have agreed to the following terms:
The purchase price for the Properties shall be $10,000,000 to be paid as follows:
a) $100,000 shall be payable upon the signing of the Letter Agreement (Paid April 16, 1997)
b) $300,000 shall be payable on the earlier of i) Receipt of funds raised pursuant to an Exchange Offering Prospectus (EOP) currently being prepared by Wayside; ii) December 31, 1997 (such earlier date referred to as the "Completion Date);
c) $1,200,000 shall be payable on the first anniversary of the Completion Date;
d) $2,200,000 shall be payable on the second anniversary of the Completion Date;
e) $3,200,000 shall be payable on the third anniversary of the Completion Date; and
f) $3,000,000 shall be payable on the fourth anniversary of the Completion Date.
Over the last two and a half years up to July 31, 1997, Wayside has spent over $3,000,000 on the 50% portion of the Cariboo Gold Quartz Mine, acquired under the Agreement dated October 3, 1994.
The Company has contracted for a resource calculation to be completed on the surface open-pit potential contained within the Rainbow, Sanders, and Pinkerton Zones. A report is expected late September 1997. This potential is contained on the Cariboo Gold Quartz segment of the property. The resource calculation is based on 463 underground and surface drill holes, including the 171 holes drilled by the Company. Fill in drilling and zone definition drilling continues in this area, with assays pending.
TEL: (604) 669-6463 J. Frank Callaghan, President FAX: (604) 669-6413 TEL: 1-800-663-9688