Trans Hex International (THI-T) has discontinued work at the Acordo diamond project in Brazil’s Tocantins state.
The company had already earned an 80% stake in the joint-venture project from privately owned Myers International, which holds the remainder. To date, Trans Hex has spent more than $3.2 million on exploration.
The cancellation is attributed to the high cost of bulk-mining, and to the high (US$300,000) annual fee payable to Myers.
The company further states that because of the “operational and permitting delays forced on the company,” it will not pay the US$150,000 penalty that is due for discontinuing the project on short notice.
Trans Hex is also pulling in its reins in the Central African Republic, where it has a 47% interest in the Bamingui property. That project, a joint venture with United Reef (URP-T), includes the recently mothballed Mbala diamond mine.
In its latest 6-month report, Trans Hex says its will not contribute to a work program recommended by United Reef, and will write off the $7.3-million carrying value of the project from its accounts as of Sept. 30, 1997.
Recently, Trans Hex Diamonds, a subsidiary of South Africa’s Trans Hex Group, raised $3.9 million in a private placement of 2.8 million shares at $1.40 each. As a result, Trans Hex Diamonds has boosted its stake in Trans Hex International to 71.8% from 64.8%.
The funds will be applied to exploration projects in Indonesia, Namibia, Angola, the Central African Republic and Zimbabwe.