|
Kubi, Ghana
Nevsun Resources Ltd. is selling the Kubi
property in Ghana to PMI Gold Corporation (PMV-TSX-V)(“PMI”). The Kubi
transaction involves the sale of Nevsun Resources (Ghana) Ltd. (“Nevsun Ghana”),
a wholly owned subsidiary of Nevsun. The Kubi property hosts a former open pit
operation that was mined by AngloGold Ashanti during the period between 1999 and
2006 whereby Nevsun received royalty payments from Ashanti until early 2006.
In consideration of the purchase of Nevsun
Ghana, PMI has agreed to issue to Nevsun nine (9) million PMI common shares and,
on or before 6 months after closing of the transaction, will pay to Nevsun a
further US$3 million. The second installment is payable in cash or in PMI
shares, or a combination of both cash and shares at the option of PMI, so long
as Nevsun’s shareholdings do not exceed 20% of the outstanding shares of PMI.
Following the close of this transaction
Nevsun will become a significant shareholder of PMI, holding approximately 12%
of PMI, and as part of the transaction has the right to appoint a nominee as a
director of PMI.
Nevsun is pleased to maintain an interest and
value in Kubi through PMI which has successfully built up its Ghana exploration
portfolio over the past few years, including three former gold producing
properties in addition to the Kubi property. The transaction has received
preliminary regulatory approval, however, is subject to normal closing terms.
The property was initially explored by BHP and subsequently Nevsun in the late
1990’s. A significant near surface resource consisting of non-refractory
mineralization was optioned by Ashanti (later Anglo-Ashanti) in 1998 and they
have subsequently mined by open pit 500,000 tonnes with an average grade of
3.65g/t Au to produce 59,000 ounces of gold. The “Ashanti Trend” a structural
feature that hosts many of the gold deposits in the Obuasi area is interpreted
to run through the western part of the Kubi property. Exploration in this area
has not been exhaustive and additional potential for Ashanti style deposits is
possible.
Location of Nevsun's Kubi Property.
3D Wire Frame of the Kubi Deposit.
Open pit mining at Kubi.
Back to Top |
