Plans by Inmet Mining (IMN-T) to sell the Troilus mine in north-central Quebec have been stalled following a technical investigation by the prospective purchaser.
Homestake Mining (HM-N) and subsidiary Prime Resources (PRU-T) advised Inmet that they had assayed core from four of Inmet’s exploration holes at Troilus, and that the results revealed lower average values than had been used to calculate Troilus’s reserves.
Homestake and Prime had reached an agreement with Inmet under which they would buy the mine for US$110 million.
Inmet, which was anxious to sell Troilus to raise funds for its Antamina copper project in Peru, has retained Strathcona Mineral Services to investigate the discrepancy between the old and new results.
Homestake and Prime consider the agreement to be off, saying Inmet failed to provide full information on its earlier results.
Be the first to comment on "Sale of Troilus mine derailed"