Fronteer Development Group Inc earns majority interest in Long Canyon gold project

Sep 25, 2008 (M2 EQUITYBITES via COMTEX) -- FRG | Quote | Chart | News | PowerRating -- Fronteer Development Group Inc (Toronto: FRG.TO) (AMEX: FRG), a company that acquires, explores and develops mineral properties, revealed yesterday (24 September)that it now has a majority interest in the new gold project Long Canyon, in north-eastern Nevada. The company has expended USD5m for exploration as per the agreement with AuEx Ventures Inc (AuEx), to gain a 51% interest in the project. AuEx and Fronteer entered into the exploration agreement on 22 December 2006. A formal joint venture agreement regarding ongoing activities will be executed for the Long Canyon project and Fronteer will continue as the project operator. Fronteer will notify AuEx, which has elected to participate in pro-rata joint funding of the Long Canyon project, by December 2008 whether it decides to earn another 14% interest in the project to make it a total of 65%, carrying all further costs till the feasibility study is completed within five years. The companies will reserve a 3% net smelter royalty on lands contributed to the Long Canyon project by both parties.

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