moosie
12 years ago
GoldSands Announces Termination of Mineros SA Agreement
Lima, Peru β November 6, 2012 (GoldSands Development Company: GSDC) announces that the agreement signed with Mineros S.A. on January 20, 2012 has been terminated by Mineros SA effective immediately.
The Mineral Right Option and Joint Venture Agreement with Mineros S.A. of Colombia, South America granted Mineros two exclusive options entitling it to acquire up to an eighty-five percent (85%) interest of GoldSandsβ owner ship interest in 49 Mineral Rights Concessions located in Northeast Peru (βMineral Rightsβ).
Mineros declared that the property does not meet its requirements for the large-scale dredging operation that they were seeking to develop. However they recognize that there may be sufficient gold bearing channels that may be suitable for smaller scale commercial gold production.
Goldsands is now evaluating its options towards continued exploration and potential gold production.
From their website. Oh my God, this knocks the wind out of the sail. This doesn't sound too promising.
tropicomfs
12 years ago
The only asset the company holds is the mineral rights on this parcel of land which has some quantity of gold. They do not have the capital to develop the area on their own. A JV partnership is the only way they get a shared revenue stream. With Mineros walking away, there isn't a way to learn what is really there. The best analogy I have is we are sitting in front of a perfectly grilled steak, and don't have a knife and fork to learn if the meat is Select,Choice,or Prime. The big surprise is the timing of the departure. The permit for exploration should have been close to issue. I don't know what they could have learned since they went to option 1, as they couldn't do much that hadn't already been done without the permitting. The DD phase would have been the time to bail IMHO. With times as tight as they are, its going to be tough to find another suitor. And with no cash flow, how long can the lights stay on. I had all the hope in the world for Goldsands, but things look a bit bleak.