Mining company Alta Gold said it has arranged financing that will provide the firm with up to $15 million over the next two years.
Chairman Dan S. Bushnell said the company has agreed to sell to its joint venture partner, Magma Copper Co. (AMEX:MCU), a 3 percent interest in the Robinson Copper-Gold Project near Ely, Nev., for $2.25 million. A pledge of an additional 17 percentage points can be used as collateral for loans from banking institutions or at Alta's election, sold to Magma. The deadline is June 30, 1993, for repayment of borrowed funds or sales of percentage points.Bushnell said the arrangement will provide the company with funds sufficient for the next two years of normal operations, for debt service and for a bank feasibility study related to the Robinson Copper-Gold Project.
Alta Gold and Magma Copper purchased the historic Robinson Mining District in December, 1990, with Magma as the operator. The companies have continued mining the near-surface gold deposits while they continue feasibility studies of the larger copper-gold project.