An option agreement signed in 1989 has resulted in Placer U.S., a wholly owned subsidiary of Placer Dome (TSE), owning one million shares of Oneida Resources (VSE). The option agreement called for Placer to make staged purchases of treasury shares in order to earn a 60% interest in the Mexican Hat property in Cochise Cty., Ariz.
The final purchase, 240,000 shares at $2.25 per share, brings Placer’s total position to one million shares, or about 11.6% of the company’s outstanding shares.
Placer noted that neither its U.S. subsidiary or itself had any intention of acquiring any further shares in Oneida.
Recent in-house calculations by Oneida put preliminary estimates of reserves and possible reserves at 7.8 million tons grading 0.034 oz. gold per ton. The company notes that the reserve figures are a manual calculation and that Placer is currently calculating its own estimate of the resource, the results of which are expected in mid-April.
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