St. Elias Mines (CVE:SLI) announced Tuesday that it has postponed the completion of the spin-off transaction of its BC properties into Havilah Mines Ltd, until the fall.
The company’s spin-out of its property assets in British Columbia was
postponed due to market conditions, it said. The concurrent financing
and listing of Havilah on the TSX Venture Exchange will also be
The company expects to finalize the spin-off, financing and listing of Havilah in the fall.
The transaction involves restructuring St. Elias’ business and assets
in order to separate its property interests in Peru from its property
interests in British Columbia.
Once closed, Havilah will have a wholly-owned interest in St. Elias’
mineral properties in British Columbia and St. Elias will retain 100 per
cent of its interest in its Peruvian gold properties.
St. Elias focuses on the acquisition and development of natural
resource properties, with particular attention paid to gold mining
exploration in Peru.
St. Elias recently saw its stock increase after reporting that its
phase 1 exploration program will start at its Peruvian Cueva Blanca gold
Cueva Blanca covers about 5,000-hectares and is located in the
Lambayeque department in northwest Peru, within the Peru Miocene
The diamond drill program, which has a $2.5 million budget, will
drill about 10,000 metres and start after the required permits are
obtained by St. Elias and Intigold (CVE:IGD).
Initial drill targets include the Cruz vein, the Cruz breccias bodies
and a stratiform silicified zone that has anomalous bismuth-mercury
geochemistry. St. Elias and Intigold have initiated field studies in the
Cueva Blanca area in preparation for diamond drilling.
The main drill target will be the gold-silver bearing Cruz vein
system. St. Elias said the target areas are along strike and down dip
from the previously drilled area of the vein.
The Cueva Blanca property is bordered to the south and southeast by mineral concessions of Vale S.A., and Barrick Gold (TSE:ABX) holds extensive mineral concessions four kilometres to the north.
Intigold acquired an option to earn a 60 percent stake in the property, subject to 1.5 percent net smelter return royalty.
Intigold will make cash payments of $200,000 to St. Elias over two
years, and issue one million shares, as well as incur $1.5 million in
exploration costs over a three-year period.
Intigold can also purchase one-half of the net smelter royalty from
St. Elias for $1.5 million and cut the royalty down to 0.75 per cent.
Shares of St. Elias traded at 23 cents Tuesday afternoon.