Battle Mountain backs out of deal with Noramco

A proposed $40-million deal between Battle Mountain Gold (TSE) and Noramco Mining Corp. (TSE) has collapsed following a review of Noramco’s projects by Battle Mountain.

The big U.S. gold miner had agreed to purchase a 40% interest in Noramco’s principle projects — the Golden Rose gold 1106 mine and the Favourable Lake and Pickle Crow projects, all in Ontario. The Estrades polymetallic deposit in Quebec was also included in the deal (N.M., May 2/88).

Although the major deal appears finished, Battle Mountain is still considering a possible deal which would see the company fund exploration on other properties held by Noramco. “We’re still very interested in working something out,” Les Van Dyke, director of corporate communications at Battle Mountian told The Northern Miner. “The focus is on exploration programs.”