The recent takeover of Arian Resources by Bema Gold (BGO-T) has given the latter firm a majority interest in Omsukchansk Mining and Geological, which owns the Julietta gold-silver deposit in Russia’s Magadan region.
Under terms of the deal, Arian shareholders receive one Bema share for every 3.3 Arian shares. As a result, Bema has issued 10 million shares, effecting a 10% dilution of the company’s currently outstanding 104 million shares (109.3 million fully diluted).
Development of the Julietta project continues apace. A bankable feasibility study envisages a 350-tonne-per day underground operation that would produce 96,000 oz. gold per year at a cost of US$119 per oz. The initial mine life is pegged at 9.3 years, though Bema expects to be able to extend the mine life by delineating additional mineralization.
Construction of the $70-million mine is scheduled to get under way in August, with production slated to begin in early 2000.
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