NORTHERN ONTARIO - Junior VEDRON GOLD of Toronto has purchased a complete gold mill from what it refers to as an "arms-length vendor" near Timmins. Vedron has several propertiesDavidson Tisdale, Augdome, Buffalo Ankerite, Fuller and Maude Rampin its portfolio of potential producers (see www.Vedron.com).
The company said the purchase price of the mill is $50,000 cash, plus an interest-bearing note in the amount of $200,000 and 800,000 newly issued Vedron shares. In addition to the purchase price, a throughput charge will be payable on material processed at the rate of $1.50/ton when the gold price is below US$550. The throughput charge will increase to $2.00/ton when the gold price is above US$550 but below US$700. When the gold price is above US$700/oz the throughput charge will be $3.50/ton.
Vedron plans to add a secondary crusher to the plant and replace the Merrill-Crowe circuit with carbon-in-pulp technology.