Salt Lake City-based
The junior can earn an 80% interest in the gold project by making unspecified payments and performing a work program.
Comprising 3 sq. miles in southwestern Elko Cty., Diamond Valley contains Carlin-type, sediment-hosted targets in Paleozoic limestones and shales. Preliminary geologic mapping and sampling have already indicated several drill targets. Assay values from jasperiod outcrops along a north-southerly trending fault zone have returned up to 0.064 oz. gold per ton.
MK, which will operate the joint venture, is preparing to carry out mapping and sampling. Geophysics, and possibly drilling, will follow.
In other news, MK has abandoned a proposed 1-for-3 stock split which shareholders approved in 1998. The reverse split was proposed in order to comply with the minimum bid requirement of US$1 per share, as outlined by the National Association of Securities Dealers Automated Quotation (Nasdaq). At presstime, MK shares were trading at about US62 cents.
The company’s decision to scrap the stock split was based on previous rollbacks undertaken by other companies to achieve Nasdaq listing requirements. “Many share consolidations have often resulted in decreases in stockholder value,” MK states in a release.
At a Nasdaq qualifications hearing, MK’s management outlined its strategy for regaining compliance with the minimum bid requirement and building shareholder value. If Nasdaq decides to delist the company, MK says it will continue to trade over the counter. A ruling is expected this month.
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