General Properties Ltd. options 70% of past producing Yarnell gold mine, Arizona

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[{"type":"text","content":"\n\n\n\nTSX Venture: GPL\n\n\nCALGARY, Jan. 24 /CNW/ - General Properties Ltd. ("General Properties" or\nthe "Corporation") announced today that it has entered into a non arms length\nletter of intent dated December 28, 2007 with CaNev Resources Corporation and\nYarnell Mining Company, Inc. (the "Vendors") for an option to acquire a\n70% working interest in the past producing Yarnell gold mine property (the\n"Property"), located 70 miles from Phoenix, Arizona.\n\n\nThe Vendors will retain a 30% carried interest in the Property. The\nletter of intent is subject to a number of conditions including approval of\nthe TSX Venture Exchange, approval of the board of directors of General\nProperties and approval of General Properties' disinterested shareholders.\nSubject to all approvals, the Corporation anticipates closing the transaction\nin April 2008.\n\n\nThe Property consists of approximately 1,000 acres of patented and\nunpatented ground. The Property was last worked by BEMA Gold Corporation, who\ncompleted a feasibility study in 1998.\n\n\nThe letter of intent confirmed the following terms of the option:\n\n\nThe Corporation will pay to the vendor the sum of $174,695 USD as a\nrefundable deposit and on receipt of conditional approval for the transaction\nand negotiation of definitive agreements, a further amount of $100,000 USD\nshall be paid. From this point forward, the Corporation will be responsible to\npay all reasonable expenses of Yarnell incurred in connection with the\nProperty as well as costs incurred to maintain the Property. General\nProperties shall also commission a technical report on the Property prepared\nin compliance with National Instrument 43-101 ("NI 43-101") and, provided the\nreport discloses an historical geological gold resource of at least\n250,000 ounces, General Properties will make a further payment of\n$432,305 USD.\n\n\nOn completion of a positive feasibility study, General Properties shall\nmake a pre-production payment of $1,000,000 USD and upon receipt of all\noperating permits, licenses and approvals to commence construction of a mine,\nGeneral Properties will make a pre-production payment to the Vendors of\n$1,000,000 USD and six months after commercial production is declared, General\nProperties shall pay to the Vendors a production bonus pay...

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