Total consideration paid to creditors of bankrupt Golden Shield Resources by Deak Resources and GSR Mining is valued at about $10.6 million, Deak reports. In addition, eight million shares of GSR are being issued to unsecured creditors. Bankruptcy court proceedings were recently completed in Toronto; the court ruling ratifies the unanimous approval given by creditors in February. Assets acquired consist primarily of the old Kerr mill and gold mine at Virginiatown, Ont.
Engineering studies have been completed for the rehabilitation of the large, 3-circuit Kerr mill and for the conversion of one of the circuits to handle sulphide ores at a rate of 1,750 tons per day. Deak owns or controls four polymetallic base metal mines in the Rouyn- Noranda, Que., area; ore will be trucked from those sites to the Kerr mill.
Financing for the turn-key $10- million mill reconstruction and conversion is being negotiated with a bank and the Northern Ontario Heritage Fund Corp.
The single functioning circuit will be used to treat gold ore from the Kerr mine and area properties. The third circuit will be modified for custom milling of gold ores.
Deak and GSR will be 50/50 owners of the mill; Deak has a 63% interest in GSR.
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