Asamera, Corona terminate deal over Cannon mine

A deal between Corona (TSE and Asamera Minerals (TSE) which would have seen Corona acquire a 51% interest in the Cannon gold-silver mine in Washington State has fallen through.

Gold-producer Corona would also have acquired from Asamera the Gooseberry gold-silver mine in Nevada and exploration properties in the U.S. and Canada. The deal also included US$2.5 million of working capital.

Asamera, 92% owned by Asamera Inc., which is wholly owned by Gulf Canada Resources, was to have received 10 million A shares of Corona and an amount eq ual to any excess working capital. At the time the two sides signed their agreement-in-principle, Corona shares were trading at about $10; recent trades in the stock were above $11.

The companies say the agreement-in-principle was conditional on satisfactory due diligence by both parties and resolution of tax and petroleum environmental liability issues.

The Cannon mine, a relatively low-cost producer, turned out more than 150,000 oz. gold and more than 263,000 oz. silver in 1988. Owner of the other 49% interest in the mine is Breakwater Resources (TSE), in which Corona has a 14% interest.