Canadian exploration companies are showing renewed interest in Guyana after the local government’s recent decision to sell nationalized industries back to the private sector in a bid to stimulate economic growth.
Even though a state of emergency was declared in the South American country after an election was postponed due to alleged rigging of voter lists by the ruling Peoples National Congress Party, foreign mining companies are gearing up to take advantage of new opportunities.
Golden Star Resources (TSE) and South American Goldfields (TSE), who have been actively exploring for both diamonds and gold in Guyana, are planning to expand the breadth of their activity there by amalgamating.
Golden Star owns 35% of the Omai gold project which partner Cambior (TSE) is preparing to bring into production at a rate of 225,000 oz. annually by the beginning of 1993.
Goldfields is a joint venture partner with Golden Star in the Mazaruni diamond project and owns 2.5 million shares or 16% of the Edmonton-based company. Controlled by Vancouver promoter Robert Friedland, Goldfields can also double its stake in the Aurora gold project, a former gold producer, to 80% and reduce partner Denison Mines’ (TSE) interest to 20% by spending $5 million over five years.
Undoubtedly, the return of Reynolds International, a unit of Reynolds Metals (NYSE), in 1986, after a 10-year absence, has helped to spark foreign interest in Guyana.
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