Squeezed out of $150-m project Witte looks for `another Colomac’

After all, the 35-year-old metallurgist was the brains and driving force behind the Northwest Territories gold project before she gave up control to Northgate Exploration (TSE) and a group of U.S. financiers. 0506,0000 As the former president of Neptune Resources (TSE), a junior exploration company now based in Vancouver, Witte came within an ace of raising the $150 million needed to build a mill and bring Colomac into production.

But she failed at the last minute to get an $18 million loan guarantee from government and Northgate refused to bank roll the 200,000 oz per year project unless she agreed to step aside. Her position is now filled by Northgate President John Kearney.

“It was just one of those things,” said Witte who recently agreed to be interviewed by The Northern Miner after the Colomac financing package was completed.

“We were so close to getting the financing that you could almost touch it, but not close enough to put the whole thing together.”

In looking back on her experience with the remote project, which is less than 12 months from going into production, Witte says she was beaten more by the present economic climate than by the government’s unwillingness to be a financial backer.

“It is a good project that got caught up in bad markets,” she said. But rather than hold grudges, Witte is philosophical about her failure to get the financing she needed.

“That’s the way life is. You don’t cry over spilt milk, you move on to other things,” said Witte who still holds about two million of Neptune’s 28 million outstanding shares.

With the Colomac experience behind her, Witte has slipped back into her former role as head of her Vancouver-based consulting firm, Witteck Development Inc. She and husband Bill Witte have been doing some travelling and are looking around for “another Colomac” to take under their wing.

Meanwhile, Northgate recently took full control of Neptune by subscribing for 15 million Neptune common at a cost of $30 million. The purchase gives Northgate a 54% stake in Neptune.

Northgate can also secure a 50% project interest by arranging a $50 million subordinated loan part of which can be converted into Neptune common shares at $2.50 each.

“They (Northgate) are doing an excellent job of executing what we put in place,” said Witte.

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