PIEDMONT MINING COMPANY ANNOUNCES SIGNING OF THE HAILE MINING VENTURE AGREEMENT WITH AMAX GOLD INC.
PIEDMONT MINING COMPANY ANNOUNCES SIGNING OF THE HAILE MINING VENTURE AGREEMENT WITH AMAX GOLD INC. CHARLOTTE, N.C., Aug. 3 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED), engaged in exploration and production of gold in the Southeast, today announced the signing of the Haile Mining Venture Agreement between a wholly-owned subsidiary of Piedmont and Lancaster Mining Company, a wholly-owned subsidiary of Amax Gold Inc. (NYSE: AU). The Haile Mining Venture was established as a result of the exercise by Amax Gold's subsidiary of its option under the March 15, 1991 Option and Earn-In Agreement with Piedmont. Piedmont received $1,750,000 in cash and 1,000,000 unregistered shares of Amax Gold Inc. common stock on exercise on May 1, 1992. The participating interests of Lancaster and Piedmont's subsidiary will be 62.5 percent and 37.5 percent, respectively, and the venture will be managed by Haile Mining Company, Inc., another subsidiary of Amax Gold. A revised work plan and budget totalling $4,490,000 for 1992 was approved for the venture in early July. Piedmont's 37.5 percent share of this total budget is $1,684,000. On June 30, 1992, Piedmont had cash and cash equivalents in excess of $3,100,000. The 1992 budget for the venture includes $1,886,000 for exploration, primarily drilling. Three drill rigs are currently operating at the Haile property, and drilling is expected to continue at this rate for the reminder of 1992. No assays are yet available. During the next 6 months the venture will begin generating some of the information required for a bankable feasibility study and for initiating permitting activities. Piedmont produced more than 1,900 ounces of gold for its account during the first half of 1992. Gold recovery for the Haile Mining Venture commenced July 1st and is expected to continue for another 2 to 3 months, whereupon rinsedown will commence. Piedmont pioneered the resumption of gold mining in the Southeast in early 1985 at its Haile Gold Mine near Kershaw, S.C., employing for the first time the heap leaching process in the humid southeastern climate. -0- 8/3/92 /CONTACT: Thomas L. Ross, Piedmont Mining Company, Inc., 704-523-6866/ (PIED) CO: Piedmont Mining Company, Inc. ST: North Carolina IN: MNG SU: JVN
CM -- CH001 -- 5981 08/03/92 08:35 EDT
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|Date:||Aug 3, 1992|
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