Toronto-based Sonora Gold (TSE) has reached an agreement to acquire the remaining 30% interest in the Jamestown gold mine in Sonora, Calif., from a subsidiary of French conglomerate COGEMA.
The purchase will give Sonora a 100% interest in the mine which is scheduled to cease production in mid-1994.
As part of the transaction, COGEMA will repay a term bank loan of US$4.4 million and contribute US$2 million cash for joint-venture reclamation obligations and working capital.
In return, Sonora will assume all of the joint venture’s obligations and the COGEMA subsidiary will receive the first US$4.4 million of available proceeds from operations and asset sales after the termination of operations. Any remaining funds will be split, 70% to Sonora and 30% to the COGEMA subsidiary.
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