Montreal-based Cambior (TSE) has reached an agreement to purchase an additional 25% interest in the Valdez Creek placer gold prospect in Alaska from a subsidiary of Valdez Gold for US$6 million. Once the purchase is complete, Cambior will hold a 75% interest in the Valdez Creek project which is expected to produce 80,000 oz. gold this year. Valdez Gold will retain the remaining 25% interest.
Approximately $5.5 million of the purchase price will be used by Valdez Gold to repay an outstanding gold loan and other obligations owed to Cambior. Full-scale production at the Alaska project is expected to begin this month after a new wash plant is in place and the Valdez Canal has been diverted.
Pending fulfilment on a number of conditions in favor of Cambior, the transaction is expected to close in mid-April, 1991.
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