Junior and major team up in Guyana

The government of Guyana has signed an agreement of intent with two mining companies interested in the country’s gold potential.

Under the agreement, Placer Dome (PDG-T) will explore prospective properties identified by the government. The major can acquire a 51% equity interest in suitable properties, and finance and develop them.

A junior resource company, International Business Investments (IBIC-C), is Placer Dome’s partner in the venture, with a 41% interest.

The government of Guyana will retain rights to an 8% stake in any project brought to production.

IBI Chairman Edward Lai told The Northern Miner that the agreement will provide the company with rights to properties hosting known gold deposits or past producers, as well as areas with potential to host large gold deposits.

The president of Guyana, Dr. Cheddi Jagan, signed the agreement with the two companies during a recent visit to Toronto.