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,
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.
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