A definitive option and earn-in agreement was signed by Amax Gold (NYSE) and Piedmont Mining (NASDAQ) which will allow an Amax subsidiary to earn an interest in Piedmont’s Haile gold property near Kershaw, South Carolina. Pursuant to the agreement, Amax Gold Exploration made a cash payment to Piedmont and agreed to assume certain property holding costs, reclamation bonding and exploration costs. It must also deliver to Piedmont a preliminary feasibility study by May, 1992.
At this point, Amax Gold Exploration will earn a 62.5% interest in the Haile property upon payment of US$1.75 million and by issuing one million Amax Gold shares to Piedmont.
A joint venture would then be formed to complete a bankable feasibility study and, if warranted, proceed with development of the property.
Until the earn-in conditions are met, Piedmont will be permitted to continue its heap-leach operations at the Haile property. The company started gold mining in 1985.
Gold production totalled 22,402 oz. in 1990, a 45% increase over the 15,458 oz. produced in 1989. Piedmont reported net income of US$209,708 in 1990, compared to a loss of US$236,652 in 1989.
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