Toronto-based Greenstone Reources (gre-t) has entered into an agreement with Independence Resources (idn-v) to acquire and develop gold projects in Mexico.
Greenstone will acquire 1 million units of Independence at 35 cents each. A unit will be worth one share and one share purchase warrant, exercisable for a 2-year period.
Greenstone is granted a back-in right to buy half of Independence’s interest in all future Mexican gold projects at the point of feasibility. The company also gains a right of first refusal for any Latin American gold projects owned by Independence.
Greenstone’s former vice-president and chief geologist, Michael Johnson, has been appointed president and chief executive officer of Independence. He will continue to act as a consultant to Greenstone.
In related news, Greenstone’s Santa Rosa gold mine in Panama is expected to meet its year-end production target of 57,000 oz. gold. During the second quarter, the mine cranked out 13,547 oz. gold, bringing total production for the year to 25,559 oz.
Cash operating costs were only slightly above budget, at US$241 per oz. A hedging program allowed the company to realize a gold price of US$385 per oz.
During the second quarter, 652,000 tonnes of ore containing 24,107 oz. gold were crushed and placed on the leach pads. Budgets called for 26,151 oz.
However, because of an increase in reserves and subsequent revision of mining plans, production from the ADLM pit (initially included in the budget) is being postponed until 1998.
Greenstone has 3.6 million tonnes of ore under leach, containing 71,000 oz.
of recoverable gold.
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