Echo Bay options IGR ground in western Africa

Gold-producer Echo Bay Mines (TSE) can earn a half interest in the Ghanaian properties of International Gold Resources (TSE), excluding the Bibiani project area.

IGR has six concessions totaling 200 sq. miles in the African nation (excluding Bibiani) and the two partners are considering acquiring and exploring other concessions.

Echo Bay will initially pay US$1.5 million to IGR, as well as spend US$19 million to explore and develop the properties over the next 4.5 years. The major must also pay a further US$7.5 million (minimum) and, should its total funding be between US$10 and US$19 million, the company will earn a 1% net smelter return royalty on a property of its choice.

In other news, a group of homeowners in the state of Alaska attended Echo Bay’s annual meeting in Montreal recently, protesting the mining company’s development of the Alaska-Juneau mine.

A spokesman for the homeowners said his group was not “anti-development,” but rather felt that Echo Bay was not developing the mine “as reponsibly as it could.”

Echo Bay is acquiring mine operating licences for the project from state and federal regulators.

Separately, long-time company chief executive Robert Calman will pass that title and responsibility to president Richard Kraus. Calman will remain as chairman.