Vancouver – Deciding to focus on its key asset, the Meadowbank gold deposit near Baker Lake in eastern Nunavut, Cumberland Resources (CLG-T, CLG-X) has sold its interest in the Meliadine gold projects, located just north of Rankin Inlet, to Resource Capital Funds for $23 million.
The move puts Cumberland’s 22% of Meliadine West and its 50% of Meliadine East into the hands of the private fund, which will also assume a contingent non-recourse loan obligation at Meliadine West. Additionally, Resource Capital Funds agrees to a price adjustment of up to $2 million should further gold resources result from the 2006 drill program and current resource estimate underway at Meliadine West.
Meliadine project partners Comaplex Minerals (CMF-T, CXMLF-O) and WMC International have both waived their preferential purchase rights.
Cumberland will earmark the funds towards construction and development of an open pit operation at Meadowbank where it forecasts annual production of about 330,000 ozs of gold over an 8-year mine life anticipated to commence by early-2009. Meadowbank hosts proven and probable reserves of 21.3 million tonnes grading 4.2 grams gold per tonne, about 2.89 million contained ozs. of gold.
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