Buying-in when political risk is at its highest is permitting
Conquest, which has already acquired five former-producing mines in the district, has now picked up the Golden Kopje mine, previously held by
Conquest is buying the property from privately owned Elverton, which owns the operating company, Thunderbird Mines. Golden Kopje was in production from 1983. It was originally operated by
Since that time, Thunderbird has been operating Golden Kopje at a loss, though it has trimmed costs substantially. In 2000, the operation produced just over 9,000 oz. gold, running cash operating costs of US$206 and total cash costs of US$254 per oz. for a loss, after taxes, of US$402,000.
The acquisition includes a 650-sq.-km land package covering the Chinhoyi greenstone belt along a structural break called the Eldorado shear zone, which hosts several old gold producers. Conquest plans to run airborne magnetic surveys and reconnaissance-scale soil geochemistry over the property.
The deal is financed by a convertible debenture of $560,000, taken back by Elverton. It bears interest at 8%, and both principal and interest can be paid off in cash or shares.
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