Cumberland offloads Meliadine interest (November 13, 2006)

Vancouver — Deciding to focus on its key asset, the Meadowbank gold deposit near Baker Lake, in eastern Nunavut, Cumberland Resources (CLG-T, CLG-X) has sold its interest in the Meliadine gold projects, located just north of Rankin Inlet, to Resource Capital Funds for $23 million.

The move puts Cumberland’s 22% stake in Meliadine West and 50% interest in Meliadine East into the hands of the private fund, which will also assume the company’s non-recourse debt at Meliadine West. Resource Capital Funds has agreed to a price adjustment of up to $2 million should the 2006 drill program and subsequent resource estimate — currently under way — increase the gold resource at Meliadine West.

Meliadine project partners Comaplex Minerals (CMF-T, CXMLF-O) and WMC International have both waived their preferential purchase rights.

Cumberland will earmark the funds for construction and development of an open-pit operation at Meadowbank, where it forecasts annual production of about 330,000 oz. gold over an 8-year mine life. Production is anticipated by early 2009. Meadowbank hosts proven and probable reserves of 21.3 million tonnes grading 4.2 grams gold per tonne, about 2.89 million contained ounces gold.

Print

Be the first to comment on "Cumberland offloads Meliadine interest (November 13, 2006)"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close