michelago boosts chinese gold stake

Michelago boosts Chinese gold stake
July 4, 2005 - 12:04PM

Junior gold producer Michelago has boosted its stake in its Chinese joint venture and says it has now become the largest foreign gold producer in China.

Michelago said the Shandong Provincial Government had approved the registration of its BioGold Sino Foreign Joint Venture (BSFJV), which operates the 150,000 ounce per year BioGold facility.

The company said it would also pay $1.6 million to its partner in BSFJV and boost its stake from 82 per cent to 99 per cent.

Michelago managing director Greg Starr said the regulatory approval had paved the way for the company to take control of the BioGold asset, which would provide it with a long-term cashflow stream.

Mr Starr said the BioGold facility was in the process of boosting its capacity to 230,000 ounces per year.

Michelago also owns the infamous Gold Ridge mine in the Solomon Islands, which it plans to have back in operation by the end of 2006.