Cantung to sell Queenstake shares

An Australian company, Balmoral Resources nl, has agreed to purchase the majority of Canada Tungsten Mining’s interest in Vancouver-based Queenstake Resources. The shareholding has been for sale for some time. Disposition of the shareholding was said to be responsible for Queenstake’s relatively weak share price this year. Balmoral also recently agreed to take a major position in Canadian United Minerals, another Vancouver company.

Cantung has agreed to sell its shareholding for a consideration of $2.30 per share which at time of writing represented a premium of more than 60 cents to the market price. Queenstake is a placer gold producer which is compatible with Balmoral’s mining interests in Australia. By mid-October Queenstake’s net payable gold production was 10,350 fine troy oz, the highest ever. Its present cash position is $2 million.