Gold-Ore Resources to acquire Bjorkdal gold mine
2007-11-19 09:53 ET - News Release
Mr. Glen Dickson reports
GOLD-ORE RESOURCES LTD.: BJORKDAL GOLD MINE-EXERCISE OF OPTION TO PURCHASE
Gold-Ore Resources Ltd.'s board of directors has formally and unanimously voted in favour of completing the option to purchase the Bjorkdal gold mine in Sweden. The acquisition is scheduled to close on Dec. 17, 2007.
The final payment to Minmet PLC will include $2.0-million (U.S.) ($1.87-million (Canadian), 12.8 million Swedish kronor) cash and four million common shares of the company. The shares will have a mandatory four-month hold as per TSX Venture Exchange policy. In addition, Minmet will retain a sliding scale 0.5-per-cent to 1.75-per-cent net smelter royalty (NSR) that varies based on gold prices. The NSR is currently payable at the rate of 1.75 per cent and can be purchased at any time for $1.0-million (U.S.) with cash or share equivalent.
In consideration for the payment, the company will receive 100 per cent of the issued shares of Bjorkdalsgruvan AB -- the Swedish company that owns the Bjorkdal mine. The assets of Bjorkdalsgruvan includes a fully operational 3,500-tonne-per-day gold processing plant with a replacement value of $40-million (U.S.), all associated mineral resources, working capital of $1.5-million (Canadian) and 43 square kilometres of prime exploration territory.
"The combination of a producing operation and highly prospective properties provides Gold-Ore the unique opportunity to immediately become a gold producing company with excellent growth potential," states Glen Dickson, Gold-Ore's chairman. "We now have a core business from which to expand our activities in Sweden. With our recent acquisition from Lundin Mining and the Bjorkdal property we now control 80 continuous square kilometres covering highly prospective gold targets near the plant."
The Bjorkdal mine is currently producing gold from surface stockpiles and from the underground workings. The mine will produce an estimated 20,000 ounces of gold during 2007. A feasibility study that addresses an underground mining expansion to 1,500 tonnes per day is nearing completion.
During the last 20 months Gold-Ore has performed an exhaustive evaluation of the property by completing 2,000 metres of tunnels, 20,000 metres of diamond drilling (210 holes) and has received 22,000 gold assays. This evaluation has clearly demonstrated that the mineralization extends northward from the open pit and is wide open to expansion.
Bjorkdal property information is posted on the company's website. Robert S. Wasylyshyn, PGeo, is the company's qualified person for the Bjorkdal project. |
