Patrician alliance with JCI ends

The “strategic alliance” of Patrician Gold Mines (PXX-A) and South African mining house JCI Ltd. has dissolved.

As a result, the Canadian junior is required to repurchase 2 million of its own special warrants at 75 cents for consideration of $1.5 million.

To fulfil this requirement, Patrician will return to JCI the $750,000 currently held in a trust account. The remaining $750,000 will become a credit against JCI’s required expenditures on Patrician’s Ikungu gold property in Tanzania, where JCI is required to spend $2.1 million to earn a 70% interest.

Under the original agreement with JCI, Patrician was required to raise $5 million within 90 days of signing the May 15 special warrant purchase agreement. The junior was unable to complete the funding, owing to market conditions.