Izok Lake deal terminated

Inmet Mining (IMN-T) has cancelled its agreement to sell the Izok Lake polymetallic property in the Bathurst Inlet region of the Northwest Territories to Kit Resources (KIT-T).

The company’s decision stems from Kit’s failure to pay a second installment of US$900,000 by February 4 as stipulated in the letter-of-intent signed last November. The third, and final, payment of US$39 million would have been due on May 31, bringing the total price tag to US$40 million.

Kit says it decided against making the second payment in order to conserve cash, but will continue to seek financing for the project in hopes of fashioning a new deal. The company also says that Inmet has shown an interest in continuing negotiations.

The Izok Lake deposit hosts proven and probable resources of 16.5 million tonnes grading 11.4% zinc, 2.2% copper, 1.1% lead and 60 grams silver per tonne. In 1994, Inmet completed a feasibility study that found the project technically feasible, but deemed its transportation costs too high for a stand-alone operation. As a result, the company took a writedown, in 1996,of US$76.5 million.

Print

Be the first to comment on "Izok Lake deal terminated"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close