Tuesday May 28, 4:55 pm Eastern Time
Aurizon: TVX Gets Offer For Casa Berardi Final Payment
VANCOUVER -(Dow Jones)- TVX Gold Inc. has received an offer from an unidentified Canadian gold producer to acquire, for C$5 million, TVX's interest in the final outstanding acquisition payment for Casa Berardi, totaling C$3,880, 400, and the 2%-4% gold-indexed net smelter royalty held by TVX on the property.
In a news release, Aurizon Mines Ltd. (T.ARZ) said TVX has advised it of the offer. Aurizon also said it's reviewing its alternatives with a view to securing the necessary funding to match the offer received by TVX.
As reported, Aurizon said last July that it had reached agreement with TVX to delay, until August 2003 , the outstanding payment of about C$4 million related to Aurizon's acquisition of the Casa Berardi property, which is in northwestern Quebec .
In Tuesday's news release, Aurizon said that, under the terms of the Casa Berardi purchase agreement, it has the right to match this offer within 45 days. It said that, by matching this offer, Aurizon would eliminate all of its long- term debt and all royalty burdens on the Casa Berardi project.
It noted that the final acquisition payment is due on Aug. 27, 2003 and accrues interest of 10% a year, payable quarterly in shares.
The gold-indexed net smelter royalty provides a 2% royalty on gold production if the prevailing gold price is less than US$375 an ounce and a maximum 4% royalty if the prevailing gold price is greater than US$400 an ounce. The royalty has a maximum cumulative payment of C$10 million.
Aurizon and TVX are gold-mining companies.
Company Web Sites: aurizon.com and tvxgold.com
-Carolyn M. King, Dow Jones Newswires; 416-306-2100 |
