Recent dramatic increases in the price of oil have provided Corona (TSE) with a perfect opportunity to seek a buyer for its stake in Poco Petroleums (TSE). Peter Steen, president of Corona, said the company has decided to sell its position in Calgary-based Poco in order to raise funds for its share of development costs at the Eskay Creek gold deposit in British Columbia.
Corona and its 70.8% owned subsidiary Avalon (NYSE) have a combined 49% interest in Poco which is currently on the block.
“In an ideal world, we would like to keep our interest in Poco as well as develop Eskay Creek which is estimated to contain 5.3 million oz. of gold,” said Steen. “But, in reality, we need the proceeds from the sale of Poco to ensure that Eskay Creek goes ahead expeditiously.”
Steen also announced several changes to Corona’s board of directors as part of a plan to accomplish an internal streamlining of the company.
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