A deal worked out between Pamorex Minerals (TSE) and Giant Yellowknife Mines (TSE) could see the Nighthawk Lake gold deposit 10 miles east of Timmins, Ont., brought into production within two years. Pamorex says Giant Yellowknife, which has a 23.9% interest in Pamorex, junior, may earn a 66/9bh/% interest in the project by bringing it into commercial production within a 2-year period and by spending $9 million.
Giant Yellowknife must spend at least $4.5 million during the first 12 months to earn any interest. By spending at least $4.5 million but failing to bring the property into production within two years Giant Yellowknife wouild earn a 30% interest; Pamorex would then become project manager.
Under the agreement, Giant Yellowknife is obliged to mill, at cost, the first 610,000 tons of ore produced from the property, Pamorex says.
Barry Simmons, Pamorex vice- president of exploration, says a mine life of 4-6 years is projected for the property at 40,000 oz. gold per year.
A preliminary reserve estimate of 1.6 million tons grading 0.17 oz. gold per ton has been calculated for the property.
Pamorex, along with certain other property assets of the Pamour (TSE) group of companies, is in the process of being sold by its Australian owners. (Pamour has a 30.4% interest in Pamorex.)
Royal Oak Resources, in which Teck (TSE) has an approximate 17% interest, is negotiating to purchase the Pamour assets for $33 million.
Former Pamorex president Adrian Fleming, who has returned to Australia, remains a director of the company. Robert Needham, chairman of Pamour parent Giant Resources of Australia, chaired this year’s annual meeting of Pamorex.
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