Meekatharra could be key this year20 Apr 2010 19:47
Meekatharra Gold Corporation
'An offer from Meekatharra Gold Corporation (‘MGC’) to acquire the Meekatharra gold project in Western Australia has been accepted by the administrators of Mercator Gold Australia Pty Ltd (‘MGA’) on behalf of creditors. Mercator is the largest creditor of MGA. The acquisition is expected to complete during 2010, and it is anticipated that Meekatharra Gold Corporation will seek a stock market listing in Toronto.
The creditors of MGA will have a 25% interest in MGC, and Mercator has invested, by way of a loan convertible into shares, an additional C$200,000 into MGC. Mercator has also agreed to contribute A$1.5 million in the form of a two year convertible instrument in itself to a trust established to hold the creditors’ interest in MGC. In return, Mercator will be entitled to 50% of the creditors’ interest in MGC.
The Meekatharra mining complex is currently on care and maintenance. Total resources at Meekatharra stand at approximately 42.4Mt grading 1.7g/t for 2.4 million oz Au, with a current minable inventory of approximately 8.48Mt at 6.08g/t for 1.66 million oz Au. The deviation of the Great Northern Highway has been completed, which would allow mining of the Surprise pit to resume if desired.
Once MGC has acquired the Meekatharra project, Mercator will reassume control of MGA and with it large operating and capital tax losses, which are of significant value.'
exact terms of deal have not been made public yet, but i feel could be a major turning point for this share price to rise if news is positive. My gut feeling is it will be
GL
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