Tambo Grande goes to arbitration

Vancouver — Last year was not kind to Manhattan Minerals (MAN-T). The Vancouver-based junior posted a net loss of US$60.7 million, reflecting a US$59.2-million writedown of the stalled Tambo Grande gold-silver-copper-zinc-lead project in Peru.

Centromin Peru, an agency of the Peruvian government, terminated an option agreement allowing Manhattan to earn a 75% interest in Tambo Grande after concluding the company had not met the qualifying conditions for that agreement. Manhattan challenged Centromin’s decision and launched arbitration proceedings to assert its case. Both sides have since nominated arbitrators in the ongoing dispute.

Manhattan spent US$2.1 million last year, most of which was used to explore and develop Tambo Grande. These expenses include the costs of a draft feasibility study, and an environmental impact assessment that sought to ease development concerns raised by local farmers.

At year-end, working capital stood at US$157,000, compared with a deficit of US$1 million a year earlier. Earlier this year, Manhattan Minerals reviewed its business plan and decided to diversify its asset base. The company plans to continue exploring its other projects in Peru, as well as evaluate copper and gold projects elsewhere in the world.