STT strata mining corporation limited

Strata Mining...Buyers buildung

  1. 963 Posts.
    It looks like some interest is starting to build on the back yesterdays announcement.

    Company Announcement


    Acquisition of Tasiast Gold Project

    STRATA MINING CORPORATION LIMITED 2002-06-03 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    Strata Mining Corporation NL ('Strata') is pleased to advise that it
    has completed a formal agreement for the acquisition of the Tasiast
    Gold Project (Mauritania) from Normandy LaSource Developpement SAS
    ('Normandy LaSource'). The Tasiast Gold Project is an advanced gold
    project which has a resource of in excess of 900,000 ounces at 3 g/t
    using a 1 g/t cut off. Along with the Tasiast Gold Project comes an
    extensive exploration land holding of approximately 5,000 sq kms in a
    very much under explored Archaean greenstone environment.

    The purchase price for the project is:

    (a) US$1,450,000 upon completion;

    (b) US$500,000 within six months of completion

    A further US$4,500,000 will be payable over approximately 3 years
    following a decision to mine plus 2% of production in excess of
    600,000 oz.

    Strata has paid the equivalent of US$9.00 per ounce of gold on the
    known resources. Work by Normandy LaSource (to a pre feasibility
    study level) indicates that the project has the potential to develop
    into a profitable gold mine with annual gold production of between
    120,000 and 150,000 ounces at an anticipated total cost of less than
    US$200 per ounce. Furthermore, the study has indicated that the
    Tasiast Gold Project will be undertaken through the development of an
    open pit to a depth of approximately 150 metres. Preliminary studies
    indicate that the ore is of simple metallurgy and that recoveries in
    excess of 90% can be expected using a conventional cyanide leach
    process. It is the intention of Strata to take the project into a
    full scale bankable feasibility study which will require some
    additional resource drilling to upgrade reserves and resource status
    and include plant design and other technical specifications.

    Strata and NM Rothschild and Sons (Australia) Limited have agreed in-
    principle terms and conditions for a US$2.7 million debt facility to
    part finance the acquisition of the project and provide hedging. Due
    diligence for this facility is under way and this is expected to be
    finalised by mid June.

    The structure for the acquisition of the Tasiast Gold Project will be
    through Tasiast Gold Limited (a group member company of Strata) which
    is to be listed on the Alternative Investment Market ('AIM') board of
    the London Stock Exchange.

    Fees payable in respect to the acquisition of the Tasiast Gold
    Project amount to $300,000. This will be satisfied through the issue
    of 8 million Strata shares at 2.5 cents per share and the balance of
    $100,000 to be satisfied through the issue of Strata stock on the
    completion of the Tasiast feasibility study at the then prevailing
    market price. Such shares are to be issued to the Parliament Place
    Group Pty Ltd.

    Cheers Ralph
 
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