Cadre Resources Ltd.
Thursday Apr 22 1999
Mr. R. Page Chilcott reports
The company holds an option agreement to purchase 100 per cent of the
Rosita 1 concession in the Caruachi region of the lower Caroni River in Bolivu State, Venezuela. Regulatory acceptance is pending.
This concession has been successfully worked by the vendor for the past nine years. The current operation uses less than state-of-the-art dredging equipment, recovers gold only, reworks old shallow water tailings dumps and at a less than 50 percent recovery rate, averages over 12,000 troy ounces per year.
The company expects to introduce modern equipment, remove all material from the river, and recover +95 per cent gold, plus other marketable material such as diamonds, titanium and sand/gravel/aggregate.
Potential financing for the concession acquisition cost is covered by a letter agreement in principle with an Australian group Superior/Cambridge). This is subject to additional financing being arranged to upgrade the project, and engaging a suitable project operator.
Teck, a Canadian international mining company, has expressed in
writing, an interest to become project operator subject to a site inspection and standard due diligence. Teck will assume financing responsibilities as the project evolves.
Martin Marietta Aggregate, the second largest U.S.-based aggregate
producer and international marketer, has expressed in writing, an interest to purchase processed gravel from the project subject to market specifications and standards.
ASTM gradations. Economics and logistic discussions are continuing.
Discussions are being held with a Canadian company (Cantex Engineering
& Construction Co. Ltd.) to provide site preparation, crushing,
processing and loading.
Dredging Supply Company Inc., a U.S.-based builder of dredging
equipment, has expressed in writing, an interest in supplying equipment and is in advanced stage discussions with EXIM Bank and Hibernia Bank. The EXIM Bank insures U.S. exporters against 100 per cent of political insurrection, currency fluctuations and project failure. This includes certain qualified engineering and support costs to the project. An application to EXIM Bank is being prepared.
A site visit involving Teck, Martin Marietta Aggregate and Cantex
Engineering & Construction is planned for early May 1999.
The company has granted incentive stock options to directors for
130,000 shares exercisable at 20 cents per share for five years. The company has reached agreement with four of its creditors to settle debts in the total amount of $239,300. The debt will be settled in the form of shares at 20 cents. |
