In order to pay down short-term debt, Sikaman Gold Resources (TSE) has accepted an offer from Billiton B.V. to sell its 14% interest in the Bogosu gold project in Ghana. Billiton, which already holds a 62.5% stake in Bogosu, has offered to pay $8.1 million for the West African gold producer. The sale, subject to regulatory and governmental approvals, will generate a positive working capital of $5.5 million for Sikaman.
Sikaman President Tom Griffis said the leftover proceeds will be used to acquire other gold properties in Ghana and to participate in attractive North American joint ventures.
“We only sold Bogosu because we had to,” said Griffis. “The company’s focus will remain in Ghana and North America.” Bogosu is expected to produce 137,000 oz. of gold in 1991 at a cash cost of US$174 per oz. Reserves at the mine stand at 19.6 million tons averaging 0.1 oz. gold per ton.
Griffis added that the company’s other producing operation, the Goldenrae alluvial mine in Ghana, is expected to meet or exceed its production forecast of 16,300 oz. for 1991. Griffis said Sikaman has no intention of selling its 34% interest in this placer gold project.
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