MINING NEWS: Junior Goldmark backs away from Iliamna deal
Despite setbacks in Alaska, Chile and changing markets, Goldmark vows to continue to seek investment, exploration opportunities
Goldmark Minerals Ltd. of Calgary, Alberta has opted not to pursue an acquisition agreement with Geocom Resources Inc. to acquire all of Geocomís interest in the Iliamna property in Alaska, and 49 percent of Geocomís complete ownership of the Santa Rosa and Marcelita properties in Central Chile.
The transaction was subject to a review of the properties, and earlier this year after completing that review, Goldmark elected not to complete the transaction.
The junior said its business plan has been to capitalize on cyclically high metal prices, driven by growing world demand, by developing an opportunistic approach to the acquisition of property and aggressive exploration in Ecuador, Peru, Alaska and potentially Canada.
Goldmark said political unrest in certain countries will make some exploration risky and changes in the marketplace since late 2007 have altered the dynamics of being able to raise capital significantly; markets are now becoming somewhat more conservative. This creates potential buying opportunities for Goldmark, the company said.
Though it earned revenues of C$269,000 through the sale of property in Alaska and from income derived from the ongoing production royalty on the property, Goldmark said it lost C$326,000 in 2007 due mainly to business plan costs totaling C$278,000 and additional expenses of $197,000 incurred evaluating prospective properties.
However, Goldmark said it has a substantial cash balance of C$1.6 million and a low burn rate.
Goldmark said it will continue to review a series of opportunities and remains optimistic that the growing demand in metal and the current limited supply will result in significant opportunities for the Company in 2008.