An agreement is in the works which could ultimately result in a production decision on the Dome Mountain project, near Smithers, B.C., or at least see further drilling done on the property. Drilling expenditures will be something of a novelty for the property. Due to legal disputes over the past few years much of the money spent by the companies involved has ended up in lawyers’ offices rather than in the ground.
The property is now 100% owned by Teeshin Resources (VSE) and the company says that it is close to finalizing a deal with an undisclosed party to fund the project through to production.
Stafford Kelly, president of Teeshin, said the agreement would include a cash payment which the company would use to retire its debt of about $850,000. The debt was incurred when the company acquired the remaining 33% of the property from Canadian United Minerals (VSE) for $1.27 million, finally putting to bed the costly legal disputes of the past few years.
Earlier this year, drilling intersected what the company believes is an extension of the known orebody which was last reported to contain a minable reserve of 324,000 tons grading 0.36 oz. gold and 2.3 oz. silver per ton.
Kelly said that the company has a drill on standby which could begin a planned $1 million drilling program after a deal is finalized.
Two 7.5% net profits interests on the property are payable to Total Energold (TSE). The NPIs have a buy-back clause expiring Dec. 13, which allows Teeshin to purchase the interests for a total of about $1.6 million in treasury stock priced at the 20-day trading average prior to exercise.
Teeshin has about 21 million shares outstanding and trades at the 30 cents level.
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