Tuesday, July 22, 2014
Mahdia forms JV
2014-07-22 16:28 ET - News Release
Mr. Donald Gordon reports
MAHDIA GOLD CORP (CSE: MGD) ANNOUNCES RESULTS OF ANNUAL AND SPECIAL MEETING, MAJOR JOINT VENTURE AGREEMENT, AND RESIGNATION OF DIRECTOR.
At Mahdia Gold Corp.'s annual and special meeting held on July 9, 2014, Donald Gordon, Robert Buckland, David Bending and John Martin were elected as directors, and Kraft Berger LLP, chartered accountants, were reappointed as auditor of the company for the ensuing year. Resolutions proposing a new bylaw and share consolidation weren't passed at the meeting.
Subsequently, Mr. Martin has resigned from the board of directors, and the board wishes to express its appreciation to Mr. Martin for his service on the board.
The company has arranged a joint venture agreement dated July 21, 2014, between wholly owned Mahdia Gold Corporation (Guyana) Inc. and related company Roraima Investment and Consulting Services (Guyana) Inc. and arm's-length equipment supplier and operator K&B Mining and Hardware Supplies of Guyana. Pursuant to the agreement the JV partner may install and assemble a total of 10 200-ton hydraulic wash plants capable of running alluvial material at the rate of 200 tons per hour together with up to 20 complete mining dredges, together with the additional machinery required to carry out mining operations, including excavators, crushers, trucks, bulldozers and other mining equipment.
The JV partner provides equipment operating personnel, fuel, and costs of running and maintaining equipment. Mahdia Guyana provides some equipment, and all other accommodation, security and equipment on hand. The parties have a monthly operating committee to deal with changes and budgets arising from such rapid buildup of processing over a short period. Mobilization of equipment has commenced and expanding production will be under way within a week. Division of proceeds is 50/50 net of the direct expenses summarized here.
An additional joint venture agreement is being entered into with the JV partner with respect to two 200-ton hydraulic wash plants capable of running alluvial material at the rate of 200 tons per hour together with two dredges on the same terms as the main joint venture, except the company retains ownership of the equipment on payout of the equipment cost and thereafter will have 100 per cent of production from that equipment.
Another operator is currently on the property with two dredges operating under a 75/25 division before expenses with 25 per cent to Mahdia, and all indications are that the operator and equipment will remain given the size of the area available to all operators.
This represents a quantum leap in resources and production. The company's short-term goal is to develop a gold production stream that may be leveraged into a significant financing for the continued development and reserve analysis of the stockpile and the two pits on the Omai property.
We seek Safe Harbor.
at 1:45 PM