An Australian group interested in acquiring City Resources Canada (TSE) plans to review the feasibility study for the Cinola gold project on British Columbia’s Queen Charlotte Islands.
The group of mining professionals also plans to review “future relationships” with the Haida, a native band living in the region. The Australians intend to acquire 10.2 million shares of City Resources from the company’s major shareholder, Central Coast Exploration. They have also proposed restructuring $5.7 million of debt owed to the company’s major lender, City Resources Pacific.
The agreement is conditional upon regulatory and shareholder approval, as well as on the restructuring of a $1.7-million loan to the company from the Hongkong Bank of Canada.
If all goes as planned, City Resources’ new management would seek local involvement in the advanced gold project. The company says this “prerequisite to the development process” would be coupled with the application of proven, simplified metallurgical methods and enhanced mineral treatment technology.
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