A wholly owned unit of NERCO (NYSE) recently entered into a joint venture agreement with BMR Gold (ASE) for ongoing development of BMR’s America Mine project. NERCO can earn a 60% interest in the property in San Bernardino Cty., Calif., by spending US$1 million by July 31, 1991, and a total of US$5 million by the end of 1992. In addition, BMR received US$275,000 cash on signing and will be paid a further US$750,000 in staged payments to Dec. 31, 1991.
If the project is brought into production, NERCO must fund BMR’s share of capital costs which will be recoverable out of cash flow.
Preliminary heap leachable reserves on the property are estimated at about four million tons grading 0.087 oz. gold per ton.
Be the first to comment on "BMR joint ventures America Mine project"