Prospex Mining Inc -
Mining expands in West Africa
Prospex Mining Inc
PRM
Shares issued 20244812
1997-10-30 close $0.17
Friday Oct 31 1997
Mr Stanley Hamilton reports
Prospex Mining (formerly known as Akiko Gold Resources) has entered into an
agreement with Nearco Jersey (Nominees) Limited for the acquisition of majority
interests in four gold concessions in West Africa (two in Guinea, one in Mali and
one in Sierra Leone); several pending applications for additional concessions in
Guinea and Mali; and a joint venture project being negotiated in Ghana. Subject to
closing this transaction, Prospex has also entered into agreements to employ Mr
David Netherway as executive director - West Africa and to appoint Mr James
Askew as a non-executive director to help Prospex acquire, finance, explore, and
develop gold projects in West Africa. Both Mr Askew and Mr Netherway have
extensive West African gold experience.
In exchange for the West African gold property interests, Prospex will pay
Nearco a purchase price of $200,000 upon closing. Thereafter, if and when
Prospex completes financing of at least US$2 million from joint venture, sale, or
financing involving the property interests, Prospex will reimburse Nearco for up to
US$250,000 of property-related expenditures in installments of US$25,000 per
calendar quarter. Upon reaching a decision to mine, Prospex will pay Nearco a
reserve bonus of up to US$1.00 per ounce of proven and probable reserves
developed on any of the properties, but not in excess of US$2 million per
property.
Closing of the transaction is conditioned upon timely financing by Prospex of the
purchase price, timely securities regulatory and board of director approvals, and
satisfactory completion of due diligence by Prospex. Consistent with its growing
focus on gold in West Africa, the company will cease to finance its former
projects in the Americas. While the company will retain royalty interests in its gold
projects in Nevada and Bolivia, it has forfeited its interest in the silver/lead/zinc
Burgin Project in Tintic, Utah, following the decision by Korea Zinc Co earlier this
month not to further finance the company's interest.
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It's nice of them to tell belatedly that they lost their interest in
the Utah project. The management of this company seems intent on minimizing shareholder value.
Bear |
