Total Resources’ decision to rid itself of all its mineral assets has led its 71% owned subsidiary, Total Energold (TSE), to put all the company’s mineral assets up for sale. Total Energold is involved in mining exploration and development both directly and through its 51% owned subsidiary, Plexus Resources (TSE).
Total Energold paid $16.5 million in cash for six million shares of Plexus in 1990 to bring its interest up to 51%. The purchase also included warrants to purchase an additional 2.15 million shares at $3 per share.
Plexus’ main asset is a 24% interest in the Denton-Rawhide heap leach gold mine in Nevada.
Other mining assets owned by Total Energold include a 49% interest in the Tundra gold project in the Northwest Territories which the company purchased for an estimated $139.6 million in 1988.
However, a $35-million exploration program completed in the fall of 1989 proved disappointing. Noranda, the company’s partner on the project announced the grades encountered in underground exploration were less than that indicated by surface drilling and declared the deposit uneconomic. Reserves had been estimated at over 30 million tons grading 0.20 oz. gold per ton.
Other property holdings include interests in the MacMillan/Clear Lake property in the Yukon, as well as property interests in the Casa Berardi area of northwestern Quebec.
Total Energold would retain its interest in the 55% owned Ranchmen’s Resources.
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