I think this is very important news for us
1/I believe SBL is involved in finanicng of Julietta.
2/Another company which was a huge mover few years back gets involved in CIS.
There is a news:
Bema Gold Corporation
BGO
Shares issued 92190909
1998-04-15 close $3.67
Thursday Apr 16 1998
Also Arian Resources Corp (ARA.U)
Mr Clive Johnson and Mr W.G. Kennedy report
Bema Gold and Arian Resources have entered into a business combination agreement
whereby the shareholders of Arian will receive one share of Bema Gold in exchange
for each 3.3 shares of Arian Resources. This transaction is subject to Arian
shareholder approval which is anticipated by mid-June.
Voting agreements in favour of the business combination have already been received
from Arian shareholders in respect of 12,776,896 shares, representing 38.7% of the
33,001,746 outstanding shares of Arian. Upon completion of the transaction, Bema
would issue a total of approximately 10 million shares.
Arian's principal asset is the 79% ownership of Omsukchansk Mining & Geological
Co, a Russian joint stock company, which owns and operates the Julietta gold-silver
deposit in the Magadan region of the Russian Far East. The Julietta property is 250km
northeast of the port city of Magadan and 600km south of Amax Gold's Kubaka gold
mine.
The Julietta property is accessible year round by road from Magadan city. The deposit
has been extensively explored and developed by Russian expeditions since 1989 and
by Arian Resources since 1994. The work included detailed geological mapping,
extensive trenching, diamond drilling and underground development to evaluate the
reserves. Initial mineable reserves of the Julietta deposit have been estimated at 1.14
million tonnes averaging 20 g/t gold and 340 g/t silver for a gold equivalent total of
approximately 1 million ounces. There is excellent potential to increase reserves at
Julietta as many of the veins remain open and there are numerous untested vein targets
within the 110 sq km area of the licence. In addition, there are several exploration
targets on three additional licences held by OMGC that cover over 200 sq km
surrounding the Julietta licence.
A bankable feasibility study was completed in July of 1996 by Davy International and
updated by The Industrial Co and Jacobs Engineering in January 1997. A summary of
their findings follows:
Mineable Reserves
Au Ag
Category Tonnes (g/t) (g/t)
Proven/probable 538,446 24.65 407.46
Possible 600,854 15.93 277.86
--------- ----- ------
Total 1,139,300 20.05 339.11
Mineable Reserves
Au Ag
Category Tonnes (ounces) (ounces)
Proven/
probable 538,446 426,700 7,053,500
Possible 600,854 307,700 5,367,500
--------- ------- ----------
Total 1,139,300 734,400 12,421,000
The mining method recommended is underground cut and fill, mining an average of
350 tonnes of ore per day. Average annual production over the initial mine life of 9.3
years is projected at 96,000 ounces of gold equivalent with average operating costs of
$119 per ounce. Production in the first three years is projected at 135,000 ounces of
gold equivalent per year.
Metallurgical test work carried out on Julietta by Lakefield Research indicated
projected recoveries of 95% for gold and 85% for silver, utilizing standard Merrill
Crowe recovery methods. Total capital costs to build the Julietta Mine are estimated
at $70 million.
All required government environmental and construction permits for construction of the
Julietta mine have been received and a gold sales and export contract has been signed
with the Russian government. In addition, Arian has started negotiations with TIC for a
lump-sum turnkey contract for the design, procurement and construction of the mine
facilities. Bema plans to commence mine construction in June of 1998, with gold
production scheduled to begin in January of the year 2000.
Bema has received financing commitments from Barclay's Capital and Standard Bank
London to underwrite a total of $60 million for the construction of the Julietta Mine.
The financings include a $40 million project loan facility that is non-recourse to Bema
and a $20 million five year revolving Bema corporate loan facility. Both loans are
subject to final documentation and the completion of the Bema/Arian business
combination. In addition, Bema will contribute $10 million of equity to the capital
costs.
All dollar amounts are expressed in US dollars unless otherwise noted. |
