New York-listed Asarco can earn a half interest in the St-Elie gold project in French Guiana, under a deal reached with Guyanor Ressources, a subsidiary of Golden Star Resources (TSE).
The 9,000-hectare concession is 120 km west of Cayenne, in an area that has produced more than 800,000 oz. gold. To earn its interest, Asarco must spend US$10 million over five years and produce a feasibility study. Recent work by Guyanor has concentrated on a surface geological mapping program aimed at delineating the extent of the mineralized rocks. An extensive survey is also under way to identify the principal structure and orientation of the gold-bearing quartz vein sets. In addition, a high-definition airborne geophysical survey has been completed in preparation for diamond drilling.
On the investment front, Guyanor has filed a preliminary prospectus for an initial public offering of its B shares in Canada. The prospectus also contemplates a proposed secondary distribution by Golden Star of Guyanor B shares to its shareholders, pursuant to a proposed plan of arrangement under the Canada Business Corporations Act.
Under this plan, each outstanding share of Golden Star would be exchanged for one new share of Golden Star and one-fifth of a Guyanor B share. Upon completion of this transaction, Guyanor would be established as a separate public company, with 70% of its outstanding shares owned by Golden Star. In other news, Golden Star and its subsidiary Pan African Resources (PARC) have signed a deal to acquire various pending mineral rights and interests in the Baomahun property and other projects in Sierra Leone, West Africa. The property is being optioned from Precious Stones Sierra Leone Baomahun, an affiliate of a private New York-based company.
Three separate zones of gold mineralization have been identified on the properties. Work on one of these zones by Harry Winston outlined 883,000 tonnes grading 11.4 grams gold per tonne.
The option term will begin upon the execution of a mineral agreement among the Sierra Leone government, PARC and Precious Stones, and will continue for three years thereafter.
Under the deal, Precious Stones will receive payments totaling US$1 million, and PARC will be required to spend US$2 million during the first nine months of the option plus US$500,000 for each 6-month period thereafter. In addition, PARC can acquire Precious Stones’ interests in the Sierra Leone properties upon completion of a feasibility study. The option exercise price is US$11 million, which is payable in shares or cash.
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