re: mic has a hic up -the full story I don't view the present delay as anything to be too concerned about. Here are the details Arthur referred to
Michelago suffers investment hiccup
Rebecca Keenan
MiningNewsNet:
Thursday, November 25, 2004
MICHELAGO could be looking for a new funding partner for the acquisition of the BioGold project in China after Canadian exploration and technology company BacTech Mining Corp pulled out of a proposed $3.24 million investment.
Last December BacTech signed a memorandum of understanding to invest in a new joint venture formed by Michelago and Shandong Tarzan BioGold (BioGold), by way of an investment in Michelago.
Michelago had an option to acquire an 82% stake in the joint venture company, which owns the 280,000 ounces per annum BioGold project, for $12 million.
Half of the acquisition funding came via a convertible note issued by LinQ Resources Fund, with the remaining funding to have come from exercising options, existing cash reserves ($6.1 million at the end of the September quarter), and the issue of shares to BacTech – equivalent to 27% of the BioGold purchase price, or about $3.24 million.
The final pricing of the investment was to be determined 15 days prior to the registration of the joint venture, provided that the price was not less than 13c per share. Michelago shares are today in a trading halt but were last trading at 11c.
Michelago managing director Peter Secker was not available for comment.
BacTech said today it would not be prudent to commit funds to the joint venture which could otherwise be used to advance its own projects. It has a 55% stake in Tonkin Springs, which owns a gold project in Nevada, and an option to acquire 100%of the McKinnon Creek polymetallic deposit in British Columbia.
Under another agreement between Michelago and BacTech, Michelago was to hold the single exclusive Bacox technology licence in China, Mongolia, Siberia and Korea for up to ten years. The Bacox process was developed to treat refractory gold ores, which cannot be treated with conventional cyanide solutions and which are prolific throughout China.
Michelago paid BacTech and the joint developer of the Bacox technology, Mintek, US$472,000 for the licence.
BacTech said it would continue to pursue commercial and strategic links with Michelago that could allow it the right to 30% of any refractory gold projects identified by the Australian junior in China.
MIC
michelago limited
