High royalty and net profit payments on the Ashdown gold property in Humboldt Cty., Nev., have led International Mahogany (TSE) to conclude the property is uneconomic.
Subsequently, Mahogany has terminated the lease it holds jointly with another party.
Elsewhere in the U.S., the company has re-evaluated its wholly owned Southern Cross gold project in Montana. As a result, Mahogany has entered discussions with several companies regarding a possible joint-venture agreement. In Chile, the company has retained a consultant to co-ordinate the development of the Tuina oxide copper project. Mahogany is discussing financing arrangements with several firms and is negotiating with two equipment suppliers. The company hopes to raise $12 million by early 1995 to construct the solvent extraction-electrowinning plant.
Finally, Mahogany has learned that Baja Gold (TSE) intends to sell its interest in Mahogany.
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