MINING NEWS: Linux Gold, Teryl extend joint venture

Linux Gold Corp. and Teryl Resources Corp. said March 22 that they had agreed to extend the term of their original Fish Creek claims agreement until March 5, 2007, giving Teryl a 50 percent interest in 30 Fish Creek claims, which are within six miles of Kinross Gold Corp.’s Fort Knox mill. The Fish Creek claims are also adjacent to the Teryl/Kinross joint venture Gil claims.

Other than this extension, all other terms of the original agreement remain the same, the companies said in a joint release from their Vancouver offices.

The original Fish Creek agreement gives Linux a 5 percent royalty interest until US$2 million has been received from the royalty payments, or the company may convert its interest into a 25 percent working interest. Under the deal Teryl may purchase the 5 percent net royalty for US$500,000 within one year after production.

Teryl also agreed to expend a minimum of US$500,000 after two years from the date of the March 22 amended agreement.

The proposed consideration is the issuance of 100,000 common shares of Teryl to Linux.

John Robertson, Teryl’s president and director, is also president and director of Linux. Teryl and Linux also have common directors.

With interests in four gold properties, Teryl is one of the main landowners in the Fairbanks Mining district. The Gil project is a joint venture with Kinross (80 percent Kinross/20 percent Teryl). The company’s holdings also include the Fish Creek claims, 50 percent optioned from Linux Gold Corp. and the Stepovich claims, where Teryl has a 10 percent net profit interest from Kinross.

Teryl also has a 100 percent interest in the West Ridge property, and has obtained a mining lease on the adjoining Fox Creek claims in Alaska.

Teryl also has one joint venture silver prospect located in northern British Columbia.

In addition to its Fish Creek interests, Linux has mining investments in China and British Columbia.

—Mining News