Wednesday, 23rd January 2008 (2730 views)

Nova Scotia-based exploration company Merrex Gold has signed an agreement with fellow exploration firm Fundy Minerals that gives it a 15 per cent stake in the Sand Brook gold project in Canada, it has been announced.

Fundy says the initial deal is worth C$134,280 (£66,786) and includes an option for Merrex to increase its stake to 50 per cent for an additional C$350,000.

If Merrex decides to raise its share in the project to half, the two companies will form a joint venture. Merrex has until June 30th, 2009 to exercise the option.

Fundy Minerals chairman and chief executive Jeff Michel welcomed the deal and said the two companies concurred that there was "solid exploration potential" in Sand Brook.

The Sand Brook prospect covers 43 claims over about 1,720 acres in New Brunswick, south east Canada.

According to Fundy, gold mineralisation is evident at the site within altered shear zones over a two-kilometre strike length.

 

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