Queries Goldhurst selling Mouska royalty

As a shareholder of Goldhurst Resources (VSE), you will be interested to know that your company is in the process of selling its royalty interest in the Mouska project.

The deposit itself is still at the underground exploration stage, and exactly when it might enter production will depend on the results of a feasibi lity study and the price of gold. If the price of gold stays up in the high ground, a production decision for Mouska could come sooner than later. Cambior says a production decision is planned for 1990. Stay tuned.

We reported (N.M., Nov 27/89) that Goldhurst recently signed an agreement in principle with Euro- Nevada Mining (TSE) which gives Euro-Nevada the right to buy Goldhurst’s 2% royalty interest in any production from Mouska.

Already the owner of varying royalty interests in at least half a dozen North American gold mines, Euro-Nevada specializes in the acquisition of royalties on precious metal deposits. In fact, the company is an avid and successful collector of such interests. Incidentally, Euro-Nevada’s share price has nearly doubled recently on drill results released from a Nevada property in which the company has a royalty interest (N.M., Nov 20/89).

The latest addition to Euro- Nevada’s growing portfolio of royalties was the option to buy Goldhurst’s Mouska interest. As part of the recent deal, Euro-Nevada will subscribe for 500,000 Goldhurst shares at 25 cents per share, and pay $700,000 for half of the royalty by Dec 1, 1991. The company also has first right of refusal on the remaining 1% of Goldhurst’s royalty.

As for the Mouska project itself, it is still the focus of advanced exploration. At last report, mineable reserves stood at 1.8 million tons averaging 0.18 oz gold per ton. More than $8 million has been spent on the project so far. A feasibility study is expected to reach completion in 1990 when a production decision will be made, Cambior says.

]]>