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News Release
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YALETOWN ENTERTAINMENT CORP. 407 - 535 Howe Street, Vancouver, B. C. V6C 2Z4 Tel: (604) 688-0118 Fax: (604) 688-3348 CUSIP# 984909101 Rule 12g3-2(b)# 82-4336 |
June 6, 1996 A.S.E Trading Symbol: YAL
CHILEAN PROPERTY ACQUISITION
Yaletown Entertainment Corp. (the " Company") announces that it has entered into a letter of intent with Mount Scopus S. A., an exploration services and drilling company, of Santiago, Chile to acquire, subject to formal contract and Alberta Stock Exchange approval, a twenty-four square kilometre exploration prospect outside of Santiago, Chile. The property, which consists of nine exploration concessions known as the Gorro #1 - #9, is located in the Borough of San Jose de Maipo, Province of Cordillera, Metropolitan Region, Chile approximately 75 kilometres south-east of Santiago and 35 kilometres due east of the El Tentiente copper deposit. The property elevation is approximately 3,000 metres limiting exploration to summer and early autumn. Road access is within 8 kilometres.
The acquisition price for the property is U.S.$10,000 per square kilometre for an aggregate of U.S.$240,000 payable 10% (U.S.$24,000) upon A.S.E. approval but not later than 60 days following execution of a formal contract, 30% (U.S.$72,000) following completion of a Stage I exploration program and receipt of a report recommending further work but not later than 12 months from A.S.E. approval of the acquisition and 60% (U.S.$144,000) following completion of a Stage II exploration program and receipt of a report recommending further work but not later than 36 months following A.S.E. approval of the acquisition. The vendor shall also retain a 2_% Net Smelter Royalty which may be acquired at any time prior to the commencement of commercial production for U.S.$1,500,000. The acquisition is subject to a finder's fee equal to 10% of the purchase price, such fee to be payable on the same terms as the purchase price.
According to the report of Richard R. Culbert, B.A.Sc., Ph.D., P.Eng., dated May 16, 1996 the property contains at least three styles of mineralization of interest: _ chalcopyrite and copper oxides disseminated in siltstones with apparent gold credits _ volcanogenic massive sulphide beds with a chalcopyrite component _ mineralized gypsum diapirs with both precious and base metals.
Writes Dr. Culbert in the summary to his report "Although a detailed mapping and sampling program is required, combining information from the brief 1992 and 1996 programs suggest that the mineralizations have considerable size potential. The massive sulphides have been noted to date at points separated by as much as two and a half kilometres and the chalcopyritic siltstones by at least six kilometres."
Dr. Culbert has recommended a Phase I exploration program of prospecting, geological mapping and sampling at an estimated cost of U.S.$251,240 and, contingent on the delineation of viable target zones in Phase I, a Phase II program of trenching and drilling at an estimated cost of U.S.$950,000. Dr. Culbert has also recommended an expansion of the property and this is now being investigated.
The Company has sufficient funds on hand to make the initial payment but will require additional financing to conduct the required exploration programs and make the additional payments.
Shareholders are cautioned that this acquisition represents a diversification of corporate endeavour only and not a change in the Company's principle business activity of motion picture production. For further information, please contact Mr. John Cumming, Chief Executive Officer, at (604) 688-0118.
John C. R. Cumming, Director, Chairman & C.E.O.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.
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Yaletown Entertainment Corporation, Vancouver B.C. Canada
tel: (604) 669-3543 - Executive/Production Offices
Canadian Venture Exchange: ECY