Vancouver-based Canamax Resources (TSE) has renegotiated the terms under which it will repay the $7.3 million it owes to Colorado affiliate Amax Gold (TSE).
At a special meeting in Toronto, shareholders of Canamax approved the company’s plan to repay the debt by issuing one common share for each $3 of indebtedness (2,455,167 shares in aggregate).
As a result, Amax Gold’s stake in Canamax is scheduled to increase to 47% from 42%.
Canamax says 1989 production from three gold mines at Bell Creek and Kremzar in Ontario and Ketza River in the Yukon should add up to over 90,000 oz. Unit operating costs are also expected to be C$357-380 per oz., the company says.
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