Vancouver Several recent share purchases and a proposed management change are giving U.S. Gold (USGL-OTC) a new lease on life. Not long after mining magnate Rob McEwan bought 11.1 million shares of U.S. Gold for US$4 million, NovaGold Resources (NG-T) picked up 5.3 million shares for US$2.6 million.
NovaGold is actively exploring and developing gold projects in northwestern British Columbia and Alaska.
U.S. Gold’s core asset is the Tonkin Springs gold mine in Nevada, a former producer with a problem-plagued operating history because of its complex, refractory mineralization. The big attraction now, however, is the company’s highly prospective land position covering 26 square miles of the Cortez gold trend.
The Cortez trend was made famous by Placer Dome (PDG-T), which made several world-class gold discoveries near its producing mine in the district. Several major gold companies are actively exploring ground north and south of Tonkin Springs.
Rob McEwan, former chief executive officer of Goldcorp (G-T), is the largest shareholder of U.S. Gold, with about 33.3% of the company’s shares. McEwan is poised to become chairman and chief executive officer of U.S. Gold.
In June of this year, U.S. Gold announced plans to merge with Romarco Minerals (R-V) and Western Goldfields (WGDF-OTC). U.S. Gold reports that those plans have since been terminated.
U.S. Gold and BacTech (BM-V) had previously announced plans to possibly revive the Tonkin Springs mine under the terms of a partnership agreement. BacTech was unable to arrange financing for a US$1.1-million reclamation-bond and withdrew from, and relinquished its 55% interest in, the project in mid-May of this year.
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