It had something to do with the Taiwa property. Placer is getting out of the JV and They are selling their interest in the Company within a year. OUCH. I unloaded my EET at a loss after holding for one year. If I see some rebound in gold I will get back in.
here it is
Etruscan Resources and Placer Dome Exploration, an affiliate of Placer Dome, have reached an agreement respecting the 1,241 square kilometre Tiawa gold concession in Niger, West Africa, such that Etruscan would regain full control and operatorship of the Tiawa project. Etruscan and Placer Dome Exploration negotiated the exit of Placer Dome Exploration from the Tiawa project after discussions took place in respect of Placer Dome Exploration's desire to amend the terms of the existing option, whereby Placer Dome Exploration could acquire a 51 per cent undivided interest in the concession.
During such discussions, Placer Dome Exploration had requested that the terms of the option exercise be amended prior to commencing the required economic evaluation of the Samira deposit on the Tiawa concession and prior to incurring additional exploration expenditures, but subsequently decided that the Tiawa project no longer fit with its worldwide exploration plan. The management of Etruscan did not consider the amendment of the option exercise terms to be in the best interest of its shareholders.
Today's agreement clears the way for Etruscan to carry out an accelerated program on the Tiawa project which Placer Dome Exploration was not willing to undertake because of other exploration priorities. The company plans to immediately start the following program:
1.Commence in-fill drilling at the Samira deposit to advance the current resource to a measured and indicated category in order to conduct a feasibility study in preparation for mining the deposit;
2.Continue drilling the down dip projection of the Samira deposit to expand the existing resource; and
3.Start drilling on high priority targets elsewhere on the expansive Tiawa concession.
This agreement with Placer Dome clears the way for an accelerated program on the Tiawa project by Etruscan which Placer Dome was not willing to undertake. Etruscan believes that the Samira deposit represents a high quality, near surface deposit which, because of its good grade and deep saprolite and oxidation profile, is amenable to low cost mining and gold recovery.
Pursuant to the terms of agreements entered into in December 1996 and October 1997, Etruscan's wholly owned subsidiary African GeoMin Mining Development granted Placer Dome Exploration and its sister company, Placer Dome Africa an option exercisable to Sept. 18, 2000 to purchase a 51 per cent undivided interest in the Tiawa gold concession for a total option exercise price of $60-million (U.S.).
Under the terms of the agreements, Placer Dome Africa agreed to incur exploration costs of at least $10-million (U.S.) on the Tiawa concession on or before Sept. 18, 2000 and to spend a minimum of $500,000 (U.S.) to complete an economic evaluation on the Samira deposit on the Tiawa concession on or before Sept. 18, 1999.
Placer Dome and Etruscan have agreed that Placer Dome will pay Etruscan $1-million (U.S.) and Etruscan will assume operatorship of the property and responsibility for all costs of the Tiawa project as of June 30, 1998. Etruscan will have immediate access to the property and all data in order to commence exploration work at Etruscan's cost. Etruscan will release Placer Dome from all remaining obligations with respect to the project, including its obligation to spend approximately $2-million of additional exploration costs.
In return, Placer Dome will relinquish its option on the Tiawa project and its right of first refusal on other Etruscan projects in Niger. Placer Dome presently holds 4,175,275 shares of Etruscan representing 11.64 per cent of the total outstanding shares of Etruscan. Placer Dome has agreed that it will continue to hold the Etruscan shares for a minimum of one year unless Etruscan identifies a purchaser for the shares in which case Placer Dome will sell its holdings to such third party at a price equal to the 30 day weighted average closing trading price of the Etruscan shares on the Toronto Stock Exchange prior to the sale provided that the sale price will not be less than $3.50. |
