Tough equity markets have forced Calgary- based Bre-X Minerals (ASE) to drop plans to earn a 55% interest in the United Western mine in Oatman, Ariz. Bre-X could have earned the interest from owner Sun River Gold (VSE) by financing US$5 million in capital cost expenditures and up to US$1 million in working capital.
David Walsh, president of Bre-X, said the current depressed level of the company’s share price would make an equity financing for the project too dilutive.
Minable reserves at the United Western mine were last reported at 1.4 million tons grading 0.22 oz. gold per ton.
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