Phoenix srengthens ’87 position to $4.9 million

The sale of a 50% interest in the Bateman, Twp. project at Red Lake, Ont., strengthened Phoenix Gold Mines’ (COATS) 1987 cash position, the company said recently.

After selling a 43% interest in the joint venture to McFinley Red Lake Mines for $4.2 million, Phoenix ended the year with $4.9 million cash in its treasury.

However the company also reported a 1987 net earnings loss of $1.64 million (39 cents per share) compared with 1986 earnings which amounted to $124,583 (3 cents per share).

Revenues increased to $767,525 on Dec 31, from $235,386 in 1986, the company said.

As reported (N.M., June 29/87), McFinley’s 100% property interest in the 30-claim Bateman property is subject only to a 8.6 net profits royalty (to a maximum $5 million) that begins once McFinley has recovered all of its costs, including the joint venture buyout price.

Phoenix Gold’s financial resources were also bolstered by $315,333 from interest and dividends and a gain of $400,138 on the sale of marketable securities.

Under a recent agreement, Placer Dome Inc. (TSE) can earn a 51% working interest in the Sturgeon River gold property near Beardmore, Ont., by spending $2 million over three years.

The agreement includes a commitment to spend at least $300,000 during the first year.