Wheaton River Minerals (WRM-T) plans to sell its 61.9% interest in YGC Resources (YGC-V) in order to finance development of its Golden Bear heap-leach mine in northwestern British Columbia.
Wheaton has agreed to a private placement in YGC of $150,000 at 40 cents per share.
The mine, which is owned by North American Minerals, Wheaton River’s 82%-owned subsidiary, produced 213,000 oz. gold from 1989 to 1994. Wheaton plans to reopen it this summer and, toward that end, has secured US$11 million in financing with BZW Mining & Metals, a division of Barclays Bank of London.
YGC has several interests in the Yukon, including the Grew Creek gold prospect near Ross River, the Argus property near Finlayson Lake, and the Ketza River project.
Wheaton expects Golden Bear to produce 25,000 oz. in 1997, rising to 39,000 oz. in 1998 and 51,000 oz. by the year 2000. Reserves stand at 1.5 million tonnes grading 5.1 grams gold.
Life-of-mine production costs are projected at US$232 per oz., with total costs pegged at US$266 per oz. Past production amounted to 535,000 tonnes, which graded 12.6 grams gold per tonne.
Be the first to comment on "Wheaton River will sell control of YGC"