Unable to come up with a final payment of US$1.1 million,
Consolidated Manus Industries (VSE) has dropped its option to acquire the Sullivan gold-copper property in Nevada.
The junior was planning to use new cyanide leaching technology at the project in order to extract both metals.
A private company, chaired by John Chapman, lent Manus $850,000 to fund an initial option payment on the property, as well as pay for metallurgical work on the known Sullivan deposit.
The loan was to take the form of a non-interest-bearing
debenture, convertible into Manus shares at 50 cents. The
debenture is still subject to approval by the Vancouver Stock Exchange, and because the Sullivan deal has fallen through,
Chapman is concerned that approval will not be granted.
If the debenture is approved, Chapman plans to stick with the company and look for similar copper-gold deposits to which the leaching technology can be applied. If the debenture is not
approved, the private company will write off the loan and
discontinue its involvement in the project.
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