An agreement between Galactic Resources (TSE) and an undisclosed major international mining company for the sale of 75% of Galactic’s stake in Far Southeast Gold Resources is on hold.
Galactic had planned to sell 75%, with an option to acquire 100% of its interest in the company which holds the rights to mine a porphyry gold-copper deposit in Benguet Province, Republic of the Philippines.
A postponement in completion of the agreement was recently announced by Galactic which had expected to complete the transaction by the end of 1989.
Not long after the agreement between the two companies was announced, the Philippine government headed by President Corazon Aquino came under siege by rebel army factions. Although unrest has since been subdued, the perception now is that further unrest is possible.
According to Galactic, the purchaser extended the closing date by depositing the purchase price in escrow pending the closing. The company expects the transaction will close within the next 60 days upon receipt of certain Philippine governmental approvals and execution of final documentation.
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