Cassiar deal not sewn up yet

Financing for the purchase of the Cassiar asbestos mine in northern British Columbia is proving elusive for Black Swan Gold Mines (TSE).

Black Swan had reached an agreement with Arthur Andersen, the mine’s receiver, to purchase the Cassiar assets for $10 million, including a $5-million reclamation bond payable to the government.

Under the terms of the agreement, Black Swan was required to come up with about $500,000 by June 26, but the company missed the deadline.

The receiver is still allowing Black Swan and its prospective financiers access to the mine, and will allow the company to complete the acquisition if financing can be arranged by July 17.

In addition to the $10 million, Black Swan is attempting to raise $30 million to pay for mine development and equipment, and to cover working capital.

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