WEEKLY ONLINE NEWS STORY
You are receiving this weekly newsletter at no additional cost as part of your subscription to Petroleum News. If you do not want to receive this newsletter, email Shane Lasley at [email protected] to be removed from the list.
| July 10, 2014 --- Vol. 08, No. 28 | July 2014
|
British Columbia
GOLD – BCGold Corp. July 9 said it has received a detailed mine plan for continued bulk sampling, mine development and gold concentrate production at the historical Engineer Mine, situated 32 kilometers (20 miles) southwest of Atlin, in northwestern British Columbia. Stratis Consultants Inc., a private company with a specialty in small-scale mining and finance, has completed a preliminary “internal report” for continued gold production from bulk sampling high-grade gold vein mineralization at Engineer Mine. According to BCGold, the three-year STRATIS base case proposal provides for costs and infrastructure upgrades to support obtaining a 6,000-metric-ton bulk sample in Year 1, for an initial investment of C$2.5 million. A further 10,000 metric tons of bulk sample material can be mined and processed in the following two years, at an additional cost. A final mine plan report is expected from STRATIS within 30 days. As this report is deemed an internal document, BCGold does not intend to post it on the Company website nor file it on SEDAR. BCGold cautions readers that it has not completed a pre-feasibility or feasibility study which establishes mineral reserves with demonstrated economic and technical viability and historically projects taken to production without establishing reserves through a feasibility study have a much higher risk of economic or technical failure. Nonetheless, BCGold management is marketing to qualified investors. Financing options the company is considering include, individually or in combination, earn in, turn-key, forward sale of gold concentrate, gold royalty, streaming, or an interest bearing loan facility.
DIRECTOR – Brixton Metals Corp. July 8 said Ian Ball has been appointed to its board of directors to fill a seat left vacant by the resignation of Jim Defer. Ball most recently served as president of McEwen Mining Inc., where he was responsible for overseeing that company’s production and exploration programs throughout Mexico, Argentina and Nevada. Prior to his position with McEwen Mining he worked for McEwen Capital. He began his career with Goldcorp in 2004 and holds a bachelor of commerce degree. Brixton Chairman and CEO Gary Thompson said, “Brixton aims to strengthen its team and shareholder base as we advance our 100 percent owned Thorn project.” Brixton has completed its phase one exploration program at its Thorn silver-gold-lead-zinc project which consisted of eight holes for a total of 1,287 meters, soil sampling and drill core specific gravity measurements. Drilling was focused on the Glenfiddich and Outlaw zones. Results are pending.
FINANCE – Chieftain Metals Corp. July 7 reported that its wholly-owned subsidiary, Chieftain Metals Inc., has completed a previously announced secured, syndicated loan facility with West Face Capital Inc. The bridge loan has been structured as a 24 month secured facility to be made available to the company in two tranches with an interest rate of Libor plus 15 percent. The first tranche, in the amount of C$7.5 million, has been advanced at 98 percent of the principal amount and will be used to update the company’s 2012 feasibility study relating to the construction of the permitted Tulsequah Chief polymetallic mine, as well as for general corporate purposes. The feasibility update has a number of key objectives. Primary among them is an alternative development scenario focused on lowering project capital expenditures based on a lower more selective production level start plus establishing concentrate transportation alternatives. Additionally, mill design, head grades and copper recoveries will be optimized. Chieftain expects that, by achieving these objectives, project financing and joint venture opportunities will be enhanced. The second tranche provides the Company the ability to draw the Canadian dollar equivalent of US$10 million, if needed, to repay amounts owing under the amended gold and silver purchase agreement with a subsidiary of Royal Gold, Inc. Provided Chieftain's feasibility update meets Royal Gold's investment criteria, the amended streaming agreement will provide, in addition to the US$10 million received on December 2011, a non-refundable US$45 million investment by Royal Gold for the project construction against the sale of 17.5 percent of the gold production up to 65,000 ounces, payable at 30 percent of the daily London price quotation and 8.75 percent of the gold production thereafter; as well as the sale of 25 percent of the silver production up to 3 million ounces, payable at 25 percent of a recognized silver price quotation and 12.5 percent of the silver production thereafter. Chieftain President and CEO Victor Wyprysky said, “We expect that the feasibility update will reflect lower capital costs, resulting in enhanced project net asset value and investment returns, thereby improving project finance-ability. The long term outlook for our main metals, zinc, copper and gold is favorable and we welcome this strong support for the project development as shown by both our largest shareholder and our streaming partner.” A copy of the loan agreement and amended streaming agreement are available for review on Chieftain’s profile at www.sedar.com.
Did you find this article interesting?
Email it to an associate.
Print this story
Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.MiningNewsNorth.com
S U B S C R I B E
|
|
|
