Goldbelt (GLD.TO) rethinking; gold at Inata, Burkina Faso
Goldbelt studies options, announces Inata study
Thu Oct 4, 2007 1:18 PM EDT
OTTAWA (Reuters) - Goldbelt Resources Ltd (GLD.TO)
said on Thursday it will examine its "strategic alternatives," including the sale of the company, as it announced a final feasibility study for its Inata gold project in Burkina Faso.
The Toronto-based junior miner said it has retained a financial advisor to assist with its review, and that it will look at offers for the company or its properties, a joint development offer, or equity or debt financing to fund development of its principal properties.
Its shares fell 8.5 percent to 97 Canadian cents on the Toronto Stock Exchange.
Goldbelt said its Inata feasibility study shows average annual production of 136,000 ounces of gold over the mine's seven-year life. The study projects mine payback after 2.7 years, based on a $650 per ounce gold price and 2.25 tonnes of ore processed annually.
The company expects it to cost $77 million to build the mine, which has estimated cash operating costs of $336 per ounce.
An environmental impact study for the project has been approved, with additional required permits expected in the next six months.
Goldbelt owns 90 percent of project and the Burkina Faso government holds the remainder. The company said it hopes to start construction in December 2007.
It said it expects final approval of a $50 million debt facility from Macquarie Bank in early December. It is also considering a variety of hedging programs.
($1=$1 Canadian)
