Giant Yellowknif’e Akaticho slowed by TSe dispute

The Akaitcho property is owned by Supercrest Mines which in turn is held 50.01% by Giant Yellowknife and 49.99 by Akaitcho Yellowknife Gold Mines (TSE). About 1,901 oz gold was recovered from the property last year before production was suspended.

Recently, Giant Yellowknife agreed to spend $400,000 on exploration before reviewing the property’s future production potential. In return, Giant Yellowknife had agreed to deal to Supercrest a 2% net royalty return on the first 250,000 oz of gold production and 3% on all gold produced in excess of that amount.

But after reviewing the agreement, the TSE has decided that it is unfair to minority shareholders of Akaitcho Yellowknife who were to have been asked to approve it at a meeting June 30. That meeting has been postponed to an undetermined date.

However, according to Frank Vandewater, Giant Yellowknife’s chief financial officer, the proposed agreement has been struck from the agenda of the postponed meeting for which a date has yet to be set.

Meanwhile, Giant Yellowknife is doing some exploration on the Akaitcho property, but the $400,000 is currently on hold for the time being, Vandewater said.

Proven and probable reserves near the Akaitcho shaft area and GKP zone stand at 140,476 tons of grade 0.373 oz gold per ton.

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