U.S. REPORT Amax negotiating for Piedmont bet

A letter of intent agreement between Amax Gold (NYSE) and Piedmont Mining (NASDAQ) is setting the stage for the major gold producer to earn a 62.5% interest in Piedmont’s Haile gold property near Kershaw, S.C. The proposed earn-in agreement would see Amax Gold make a cash payment to Piedmont, assume certain property and exploration obligations, and deliver a preliminary feasibility study by May, 1992.

At this stage Amax would earn a 62.5% interest by paying US$1.75 million in cash and issuing one million of its common shares to Piedmont. A joint venture would then be formed to complete a bankable feasibility study, followed by development of the property if warranted.

Since 1985, Piedmont has operated an open pit, heap leach mine at Haile. The operation turned out 22,402 oz. gold in 1990, compared with 15,458 oz. in 1989.

But during the next six months, the company will be phasing out the heap leach operation to concentrate on an expanded exploration and drilling program with Amax Gold. Piedmont said the objective is “to develop a significantly larger gold operation on the property.”

In other news, Corona (TSE) and Piedmont terminated a joint venture to explore for titanium-bearing heavy mineral sands deposits in the Carolinas.