Junior mining company Ressources Val d’Or (ME) plans to transfer its rights to 80% of the Vendome zinc project in the Val d’Or area of Quebec to private firm Bullion Monarch Canada Resources. The new arrangement replaces a cancelled agreement under which Val d’or and Bullion would have merged. The new deal will permit Val d’Or to complete its payments to acquire 100% of the Vendome project from Abcourt Mines (ME), and pave the way for an eventual merger between Val d’Or and Bullion.
Bullion may substitute for Val d’Or in making the three payments owing to Abcourt, Val d’Or President Pedro Cardoso said. A payment of $500,000 is due Nov. 30. Two more payments of $500,000 each will come due in November of 1991 and November of 1992.
Val d’Or will retain a 20% interest in the Vendome project and become operator of the new joint venture. Bullion will be responsible for raising funds to bring the project into commercial production. Bullion will also be responsible for negotiating and financing the milling operation to produce zinc concentrate.
Bullion is undergoing a merger with an affiliated company in the U.S. The U.S. affiliate is active in Nevada.
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