mrsmith, You were wrong when you stated the following<< Also, Northgate didn't sell the ABM property in six months. Northgate was having problems with a property in northern British Columbia that wasn't owned by Ager, and needed the cash.>>
The following is from page 3 of Northgate's Financial Post Card.
" In August 1988, the company acquired 45% equity(88% voting) interest in ABM Gold Corp.(later renamed North West Gold Corp.) for US$28,300,000. ABM's principal asset at the time included 25% interest in Sonora Gold Corp., 60% interest in United Gold Corp.,20% interest in Inca Resources inc., and a 15% net oerating profits interest in Sonora's Jamestown mine.
Aso in August 1988 the company purchased, by private placement, 3,193,550 common shares of Sonora Gold Corp. for $9,926,000, giving it 16% direct interest in Sonora."
Now flash forward to an article dated March 21, 1989 in the Financial Post. " Sonora Gold Corp posted a net loss of $55.2 million for the year ended December 31, 1988 compared with a loss of $5.4 million a year earlier. The figures include a $50.6 million writedown in the carrying value of the Jamestown mine in California."
By my reckoning that was less than 6 months after consumation!
This has nothing to do with the much later writedown of the Colomac project you referred to.
Ps Terry Alexander, of Arakis fame, was the vp corporate finance of ABM Gold. |
