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focus on syama mine --rsg has option

  1. stolwyk

    22,691 Posts.

    1. Syama Mine
    On 17 April, 2003, the following Announcement was made:
    Option to Acquire Syama Gold Mine from Randgold Resources:

    An interesting Option which runs out on 17 April this year.
    "Resolute will pay Randgold Resources an option fee of
    US$75,000 per month during the term of the option and can acquire Randgold Resources' interest in Somisy by payment of the exercise price of US$6 million. Somisy may have debts of up to US$7.0 million at settlement".

    Obviously RSG was not paying US$75,000 per month or US$0.9 mill. over the 12 months unless they are very serious about it.
    They would have had enough time to check everything including the possible 5 mill. gold ounces resource data.

    Later, RSG made the following statement:
    Jan. 28, 2004: Second Quarter Activities Report:
    "Feasibility study activities advanced during the quarter. Results to date have identified an alternative treatment route".
    + + + + "Study expected to be completed in March quarter".

    I would expect RSG to make a statement sometime in April, perhaps it may be earlier or later than 17 April.

    As to the expected production and any capital expenditure, they should tell us that at the same time.

    The Mill could perhaps produce some 300,000 ounces per year within 2 years, but of course RSG will give us their estimate in the Announcement to come.

    Will it be another cheapy as posters think, the bought mine Ravenwood was?

    We'll see.

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