An agreement has been finalized between Belmoral Mines (TSE) and Roddy Resources (TSE) of Vancouver whereby the former may acquire up to a 51% equity interest in Roddy, which operates the Bighorn heap leach gold mine near Wickenburg, Ariz.
Under the agreement, Toronto- based Belmoral advanced $4.5 million(US) by way of a convertible debenture, the proceeds of which have been used by Roddy to repay debts and to provide working capital for development and mining.
The debenture is convertible into common shares at $2.04(C) each for a 3-year period; Belmoral has a 3-year option to purchase sufficient additional shares at $2.40 per share which would give Belmoral a 51% equity interest in Roddy.
Belmoral says it will now manage the Bighorn project, which currently has one million tons of reserves grading 0.06 oz gold per ton and is capable of producing 1,000 oz gold per month. Roddy owns 6,500 acres contiguous to the Bighorn property.
Appointed to fill three vacancies on Roddy’s 5-man board of directors were Kenneth Dalton, Steven Harapiak and Rene Galipeau. The trio from Belmoral joins Jack Lovelock and Walter Callum on the board. Harapiak has been named president, replacing Lovelock.
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