Rio Narcea trims board (January 08, 2002)

An investment group has purchased 12.85 million shares of Rio Narcea Gold Mines (RNG-T) to nab a 19.8% equity stake in the company. The group includes Chairman Chris von Christierson.

The shares, purchased at 65 apiece, reduce the holdings of Hullas del Conto Cortes S.A. and Lignitos de Meirama S.A., which formerly held 19.9% and 14.9%, respectively.

Concurrently, Fernando Chinchurreta Bollain, Fernando Herranz Villafruela and John Hough have resigned as directors. The resignations leave the board with seven members: von Christierson; Alberto Lavandeira; Stanley Beck; Anthony Bloom; Elias Velasco Garcia; John Hick; Jacobo Valdes Pedrosa; and Hugh Synder.

Rio Narcea produces gold from the wholly owned El Valle and Carles mines in Spain. In the first nine months of the year, the two cranked out just less than 90,000 ounces at a total cost of US$220 per oz. Nevertheless, the company incurred a net loss of US$898,300 (or 1.4 per share) during the period.

Rio Narcea is also examining the feasibility of advancing to production the Aguablanca polymetallic project in southwestern Spain. The results of the study are expected in the second quarter.