Acquisition thoughts...It has been interesting to follow Nevsun's story on the failed Segala Gold Project in Mali.
The mine operations were suspended back in September of 2007 as it was running at a loss. The problems were cited as being lower than expected grades,and poor performance of the mining contractor. Nevsun had spent about $90 million just to build the mine.
They sold the mine and land package to Avion Resources in March of 2008 for $20million.Avion successfully executed a drill program over the summer (including
13.56 g/t Gold Over 22.5 Metres). In September they made plans to restart production in early 2009. So close, yet so far....
Lookslike they couldn't raise any cash to go ahead, so a few weeks ago they sold their half of their 80% stake (the other 20% is owned by the Mali Gov't) to Dynamite Resources for $5 million(
details here). Looks like a good deal for Dynamite.
That's the kind of thing SBB could do. Pick up 50% interest in a project that needs just a bit more cash to reach production.
-Alex