Shares in Twin Mining (TWG-T, TWMNF-O) were off as much as 4.5, or 24%, at 14 in early trading in Toronto on Mar. 13, after the company announced late on Mar. 10 that Japanese gold investment company Jipangu had passed on a second helping of the company’s shares.
Late last year, Jipangu picked up 36 million shares — good for a 19.8% stake in Twin for around $4.3 million. At the time, Jipangu also inked a letter of intent to subscribe for another 63.9 million units at 13.75 apiece, for gross proceeds of around $8.8 million. That deal would’ve seen Jipangu boost its interest in Twin to about 40.8% or 51% on a fully diluted basis.
Twin says Jipangu remains interested in its wholly owned and long-stalled Atlanta gold project, 60 miles east of Boise, Idaho. Talks regarding further investment by Jipangu continue; Twin is also pursuing alternative financing.
At Atlanta, Twin recently signed a memorandum of understanding with the U.S. Forest Service that allows for the completion of the environmental impact statement (EIS) process. The company says that during the past 2 years, it has substantially completed baseline environmental studies in anticipation of the EIS. The EIS is a prerequisite to obtaining a mine construction permit.
Atlanta is envisaged as an open-pit, heap-leach operation producing an average of 100,000 oz. annually over 10 years. Cash costs at the US$37.9-million project are pegged at US$188 per oz.
At last count, proven and probable reserves stood at 13.7 million tons grading 0.06 oz. gold and 0.16 oz. silver per tonne, or 0.039 oz. gold-equivalent. The waste-to-ore stripping ratio is 3.39:1.
Twin acquired the project in 1985 and has faced environmental challenges as it works to revive the past-producing property.
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