Echo Bay sells Nuinsco stake

Echo Bay Mines (TSE) has agreed to sell its controlling 53.8% interest in Nuinsco Resources (TSE) for $6.7 million or 87 per share. The sale to Deak International Resources follows the completion of a prefeasibility study which concluded that Nuinsco’s Cameron Lake gold deposit in Ontario was uneconomic at current gold prices. At that time, Echo Bay said that it had no plans to sell the interest.

The sale of the block of 7.6 million Nuinsco shares will result in a loss of $2.9 million (US) to Echo Bay, the company says. An Echo Bay spokesman says that Deak plans to bring the property to production.