Toronto-listed Sikaman Gold Resources has sold Monk Gold Resources (ASE) a 37.5% interest in the Sol Wood mine and a 50% stake in the Seneca gold project for $1 million cash.
Monk must pay $300,000 by May 28, $200,000 by June 11 and $500,000 by July 15, 1993. As well, Monk will share equally in the costs of future exploration and development.
Sikaman will use the proceeds to reduce its bank line of credit and to explore its joint-venture diamond concession in the Republic of Central Africa. The company also intends to resume mining at Sol Wood, which is in the Sierra Mountains of California.
Following a winter shutdown, the mine will produce about 23,000 oz. for the remainder of its 8-10-month reserve life.
At the Seneca claims, also in California, the reserve potential is 750,000 cubic yards containing a recoverable 225,000 oz. gold, Sikaman reports. Once Sol Wood closes, much of the machinery will be trucked to Seneca so as to minimize capital costs.
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