Vancouver — Having spent US$16.4 million on the Tambo Grande massive-sulphide project in Peru, Manhattan Minerals (MAN-T) posted a loss of US$4.7 million, or US13 per share, for the year ended Dec. 31, 2000.
Driving the loss was a US$3.3-million charge from discontinued operations. During the year, Manhattan placed all of its Mexican subsidiaries for disposal. In March, the subsidiaries were sold. Discounting the charge, the junior tabled a loss of US$1.4 million, or US4 per share, compared with a loss of US$1.2 million, or US5 per share, in 1999.
At the end of the year, the company had US$4.4 million in cash and short-term deposits, plus a working capital of US$3.7 million.
Manhattan is focussing all its efforts on advancing the Peruvian project, but has encountered significant resistance to developing the site into a mine. This month, the government of Peru granted a one-year extension on the option agreement for the promising property.
The new time-line for exercising the option is now May 2003. The move follows a local uprising in February, during which the project’s facilities were vandalized. Although the company originally said it would not delay the June completion of its ongoing feasibility study, it has now changed the date to June 2002.
Manhattan continues to work on the prefeasibility study for the TG-1 oxide gold deposit and the TG-1 and TG-3 sulphide deposits.
The company is earning a 75% stake in Tambo Grande, which consists of 10 concessions measuring 100 sq. km.
Manhattan also has a 100% interest in the Lancones concessions (737 sq. km) and an option to earn up to a 100% interest in the Papayo joint-venture lands (32 sq. km). The Lancones land package adjoins Tambo Grande mainly to the south and partially to the east and north. The Papayo concessions, which include the B-5 anomaly, are to the south.
Manhattan can earn an initial 51% interest in Papayo by spending $5 million on exploration over five years and paying $250,000.
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