Northern Orion drops South African gold deal

Northern Orion Explorations (NNO-T) has dropped a deal to acquire Ditchburn Management, which holds a 12-month option to acquire up to a 90% interest in President Steyn Gold Mines of South Africa.

Northern Orion says it is no longer pursuing the deal because President Steyn Gold Mines introduced terms that were “beyond those of the signed letter agreement.”

President Steyn operates several mines situated 190 km southwest of Johannesburg.

Meanwhile, Thistle Mining (THT-T) plans to acquire several gold mining assets in the Free State in return for US$32 million in cash and a monthly royalty of US$8 per oz. gold over five years. Among the assets are the company Mindserv and its wholly owned subsidiary, President Steyn Gold Mines, which is listed on the Johannesburg Stock Exchange.

In the third quarter, President Steyn Gold Mines produced 45,597 oz. at a cash cost of US$213 per oz. The company realized a price of US$247.83 per oz. During the first nine months of this year, 134,740 oz. were produced at an average cost of US$218 per oz.

Thistle has appointed Endeavour Financial in London to arrange US$25 million in bank financing, so that it can pursue its acquisitions. The European division of Canaccord has been appointed to raise an additional US$10 million via a convertible loan note issue.