Bitech to sell Nugget Pond

Ownership of the Nugget Pond mining property in central Newfoundland is about to change hands.

Alberta-listed Bitech has agreed to sell the property, along with its associated rights, interests and royalties, to Noveder (ME) for $1.3 million and 4 million Noveder common shares. At current market prices, the deal is worth about $2.5 million.

Bitech acquired the Nugget Pond property in 1987. In the following year, it identified gold dust in soil samples. After completing follow-up trenching, a drill program was initiated which delineated reserves of 226,000 tonnes averaging 13.7 grams gold per tonne. After additional drilling was done, Bitech increased minable reserves to 454,000 tonnes averaging 12.68 grams. Since the early 1990s, the project has undergone little exploration. Noveder and Bitech have also entered joint-venture agreements relating to two other properties. Noveder can earn a half interest in Bitech’s Betts Cove and Tilt Cove properties, near Nugget Pond, by spending $550,000 on each. Both the agreement to sell the Nugget Pond property and the other joint-venture agreements are subject to regulatory approval. As a result of the two transactions, Bitech will cease its Toronto-based mining operations and eliminate forecast expenditures of $1.2 million. The company intends to focus on developing oil and gas properties in the Komi Republic, part of the Commonwealth of Independent States.

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