This is a very important and positive development for GLDR. They will either be carried to production or cashed out.
DJ Venezuela's Minerven May Replace Placer Dome By Year End
CARACAS (Dow Jones)--Venezuela's state-owned gold-mining company
Minerven may replace concession holder Placer Dome Inc. (PDG) at its
Las Cristinas mine by the end of 2001, a person close to the deal
said Monday.
Minerven is currently negotiating with several companies, including
Canada-based Gold Reserve Inc. (GLDR), South Africa's AngloGold Ltd.
(AU), and Homestake Mining Co. (HM), the person, who asked not to be
identified, told Dow Jones Newswires.
Placer Dome will likely arrive at a "negotiated settlement" to sell
all or part of its 70% interest in the mine, which has proven
reserves of 12 million ounces, the person said. They added that
Minerven is also negotiating with Scotia Capital for financing.
Company officials couldn't be reached for comment.
Placer Dome suspended construction at Las Cristinas July 1999 due to
low metals prices. Last June, it wrote off its $116 million
investment in the project.
Minerven is awarding 25-year exploration and production concessions
in the southeastern state of Bolivar. Besides Las Cristinas, Minerven
is awarding concessions at its Las Brisas mine, with 5 million ounces
of proven reserves, and an adjacent area with 5 million ounces of
estimated reserves, the person close to the deal said. This is all
part of the government's plan to establish "strategic associations"
with private companies to rejuvenate its ailing mining and heavy
industry sectors.
Minerven is the gold-mining arm of state mining and heavy industry
holding Corporacion Venezolana de Guayana. |
