Juniors find hurdles in property deal

The vendor is trading at 2 cents; the potential purchaser at 6 cents. The tough times for junior companies are not helping two companies conclude an agreement for the sale of a 50% interest in the Leninogorsk base metal tailings project and a 60% interest in the Abyz massive sulphide deposit, both of which are in Kazakstan.

Earlier this year, Steppe Gold Resources (SPE-V) announced plans to acquire interests in these projects from Goldbelt Resources (GDB-V).

The transfer was to be completed by the sale of Goldbelt International, a subsidiary of Goldbelt. However, both parties now report that the transaction has been delayed “for a number of reasons” largely outside their control, including title issues.

Both Steppe and Goldbelt are attempting to resolve these issues with unrelated third parties in Kazakstan. In the meantime, they are considering “alternative arrangements.” Steppe Gold hopes to reach a revised agreement by the end of January 1999.

In a separate transaction, Goldbelt plans to sell 55% of its current 80% interest in Dostyk Minerals, which holds exploration licences in central Kazakstan. The potential purchaser, Dabney Industries, has completed its due diligence and already paid half the US$100,000 closing fee.

To earn its 55% interest, Dabney must spend the next US$2 million on exploration or maintain the licences in good standing through to late 2000. Goldbelt will retain a 25% stake, which Dabney can purchase for US$900,000.

Print

Be the first to comment on "Juniors find hurdles in property deal"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close