Just over a year after announcing plans to purchase a 100% interest in the Table Mountain gold property, Cusac Industries (VSE) has finalized an agreement with owner Energold Minerals.
The purchase increases Cusac’s interest to 100% from a 35% net profits interest. On closing, Cusac paid Energold $116,348.65 plus 1.4 million free trading shares, bringing the company’s total shares outstanding to 9.4 million.
Energold retains a 10% net smelter return which will be applied against a final payment of $500,000 due in one year. Following the final payment, Energold will have no interest in the project.
The Table Mountain property includes a 300-ton-per-day flotation-gravity mill and about 112 square miles of claims. The mill is described as near-new, having processed only about 50,000 tons over the past six years since it was built.
Cusac expects to begin mining on the west portion of the Bain vein this spring if the company can raise the required startup capital. Including a 1,000-ft. long decline, stope development costs and working capital, the company estimates funding requirements at about $3.8 million. Cusac signed an agency agreement with First Croat of Vancouver last October, enlisting the company to assist in the forward sale of a portion of the anticipated Table Mountain gold production.
Guilford Brett, president of Cusac, said he is encouraged by First Croat’s progress, although funding is still up in the air.
Production from the area is expected to yield about 30,000 oz.
Be the first to comment on "Cusac assumes ownership of Table Mountain project"