A 75% interest in the Beauchastel gold project, owned by problem- plagued Augmitto Explorations (TSE), will be acquired by Radisson Mining Resources (ME).
Under the terms of an agreement, Radisson has the right to acquire a 75% interest by paying Augmitto’s creditors $2.2 million.
An additional $300,000 will be lent to Augmitto. The money will be reimbursed on 24 equal monthly payments beginning one month after the property enters gold production. Both cash payments must be completed by Feb. 15.
Radisson’s deal remains subject to the completion of due diligence on the property, the approval of Augmitto’s creditors and regulatory authorities. Rothschild Bank is Augmitto’s largest creditor.
Radisson’s due diligence will examine the property’s mine reserves, the status of liens on the property and the status of environmental permits for the mill.
Work completed by Augmitto, as part of that company’s $8-million expenditure, outlined reserves of 1.8 million tons grading 0.16 oz. gold per ton. Access to the deposit is via a decline ramp to a depth of 600 ft. and a 3-compartment shaft to 838 ft.
The property also has all the required surface installations on site. According to Radisson, an additional $6 million will be required to complete the mill.
The deal also gives Augmitto the right to take back the property after 323,000 oz. of gold have been extracted. An option to repurchase another 24% interest within three years at fair market value is also retained by Augmitto.
Be the first to comment on "Radisson, Augmitto deal could lead to production"