Franconia Minerals To Increase Ownership At Birch Lake To 82%
SPOKANE VALLEY, WA - Franconia Minerals Corporation reported that it has given formal notice to its joint venture partner, the Beaver Bay Joint Venture (BBJV,) of its intention to fund all of BBJV's carried interest (30%) in its Duluth Complex copper-nickel-platinum group metals properties in northern Minnesota, including the Birch Lake deposit.
In accordance with the terms of the Birch Lake Joint Venture Agreement, an agreement signed in 2008 between Franconia and the BBJV, Franconia has the right to increase its interest from 70% to 82% by funding all of the BBJV carried interest through to commercial production. Under the terms of the Agreement, Franconia would recoup these costs from BBJV's share of proceeds from production. "Given our recent 35% resource increase at Birch Lake, the indications from historical drilling demonstrating still further potential to expand Birch Lake and Maturi, as well as the fact that Birch Lake remains open in several directions, we are very pleased to be moving towards another important ownership milestone in our ongoing development of the Birch Lake property," said Brian Gavin, President and CEO. Franconia continues as the project operator and maintains primary responsibility for managing the approximately 15,000 acres of lands held in the project. Mr. Ernest K. Lehmann, a founder and former director of Franconia, owns a controlling interest in North Central Mineral Ventures Inc., which in turn owns 70% of BBJV. Franconia is currently focused on the development of the Duluth Complex copper-nickel-platinum-