Lencourt’s study has shown the operation of Sominki to be profitable in 1988. During the year, the company produced 2,700 tonnes of tin concentrates and 20,00 0 oz of gold which generated revenues of $17.5 million.
In the first half of 1989, revenues will equal or exceed this amount as result of higher tin prices and increased gold output. The company’s assets also inclu de a variety of gold exploration properties.
The most promising is the Twangiza, which has been optioned by Lencourt to a Dutch-based mining company. The company can earn its interest in the pr operty by paying $6 million (US). Reserves at Twangiza are estimated to contain about 650, 000 oz of gold with the potential for another 2.1 million oz.
Lencourt is also negotiating a forward sale on some tin concentrates with a London-based dealer. If completed, the deal would provide $5 million to be used as working capital. To date, funding for the African project has come from a loan from the the Ontario International Corporation and from payments owed by the Dut ch company for the Twangiza option.
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