Pioneer Metals (TSE) recently accepted an offer from a unit of Placer Dome (TSE) to joint venture its Bonito gold-silver property in New Mexico. In order to earn a 60% interest, Placer Dome is required to pay Pioneer US$2.4 million and complete a US$4-million work program.
Pioneer’s Puffy Lake gold mine in Manitoba is being offered for sale in order to reduce bank debt. Mining operations were suspended last year after a short and unprofitable operating run. The company is also reviewing proposals to joint venture several properties in British Columbia.
Pioneer recently converted its gold loan to a U.S. dollar loan which the company said helped reduce its original bank loan exposure to about $18.5 million from $28.8 million.
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