Sikaman, partners announce start- up for mine in Ghana

The company also reports the International Finance Corp.(IFC), the investment arm of the World Bank, has arranged for the financing of the $105-million projec t through a syndicate of commercial banks.

The Bogosu project, with mineable, open pit reserves of 10.2 million tons grading 0.11 oz gold per ton, will produce an estimated 951,646 oz duri ng the first 10 years of operation. The production cost during that period is projected to av erage $179(US) per oz.

The Bogosu mining lease encompasses 95 sq km. Sikaman says current reserves do not include several additional open pit and underground deposits on the property.

Toronto-based Sikaman has a 15.5% interest in the project, having sold recently a 25% interest in the project to partner Billiton BV of The Netherlands for $5.1 million(C).

(Prior to the above deal, Sikaman and Billiton had equal 40.5% interests in the project, with the IFC holding 9% and the Government of Ghana, 10%.)

Sikaman says it has an option with Billiton to re-purchase an 11.5% interest between Oct 1, 1990, and Sept 30, 1991, to increase its total interest in the pro ject to 27%.

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