Wildcat buys Bissett mine

Winnipeg-based Wildcat Exploration (WEL-V) has picked up the closed Bissett gold mine, in Bissett, Man., from South African mining house Harmony Gold Mines (HGMCY-Q).

Wildcat will pay $5 million up-front and a further $10 millon over four years for the project, which Harmony closed down in August of last year. Bissett produced 44,300 oz. gold for Harmony over the fiscal year 2001, which ended June 30.

The transaction is only at the letter-of-intent stage and is conditional on Wildcat’s securing a financing for the deal. Wildcat is in discussions with investment house Jory Capital for the $5-million downpayment, plus $3 million in working capital for exploration and development at Bissett. The company expects to cover the rest of its obligation to Harmony out of future financings or cash flow.

Wildcat is hoping a return to shrinkage stoping at Bissett will limit dilution; Harmony, which had mined using longhole stoping, found dilution levels at Bissett to be excessive.