TVX Gold (TSE) has agreed to sell its 34.1% stake in High River Gold Mines (TSE) to Restech Canada holdings, a subsidiary of Australia’s Restech International.
After the share transaction, the Restech Group, including Australian subsidiary Hunter Resources, will own 6.9 million shares, or 43.7% of High River.
Earlier this year, TVX ceased work on High River’s Nor-Acme gold project at Snow Lake, Man., citing poor market conditions.
“TVX generally doesn’t get involved in exploration,” said Executive Vice-President Ian Telfer. “This property just doesn’t suit our philosophy.” TVX was handed the High River interest by Inco (TSE) after Inco’s gold division merged with Consolidated TVX Mining. TVX is acquisition rather than exploration-oriented, and most of its properties are producers. Nor-Acme contains proven, probable and possible reserves of 4.2 million tons grading 0.19 oz. gold per ton. The deposit is open at depth and along strike, and Restech plans to expand on TVX’s work.
Proceeds of the 5.4-million-share sale include cash and securities, a 1% net smelter royalty and the option to participate future financings of the Nor-Acme project.
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