Faced with the continuing cost of keeping the Astoria mine on standby, Yorbeau Resources has decided to close it.
The company will remove underground equipment from the mine, 3 km south of Rouyn, Que., and allow the workings to flood.
The equipment is expected to fetch about $450,000, in which case the company would be left with long-term debt of $750,000. This can be converted to shares at $1 per share on maturity.
Yorbeau will seek a joint-venture partner to explore the 20-sq.-km property, as well as other holdings in northwestern Quebec.
The company’s Ellison property, 37 km east of Rouyn, is expected to generate revenue by the end of June. Under an agreement with Republic Goldfields (VSE), Yorbeau retains a net smelter return of 2-2.75%, based on production. If production is not reached by June 30, Republic is required to make a monthly payment of $15,000; otherwise, the property reverts to Yorbeau.
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