An agreement with
The $26-million open-pit mine began production in 1995 and ceased operations in April 1998 because of low gold prices. During its 3-year production run, about 128,000 oz. gold were recovered from 1.1 million tonnes. The remaining reserves stand at 320,000 tonnes averaging 5 grams gold per tonne.
Under the terms of the agreement, Big Valley will pay Kinross $3 million cash for the mine and related assets, and assume all environmental liabilities (believed to be in the range of $1-2 million). The permits are in good standing and the 800-tonne-per-day mill and related infrastructure are intact.
The transaction, expected to close by the end of October, is conditional upon due diligence and approvals. Big Valley also is required to secure financing by mid-June.
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