JOHANNESBURG (miningweekly.com) – Toronto-quoted White Tiger Gold on Friday said Deutsche Bank had chosen to take over its Lamaque gold mine in Quebec, as well as the San Juan gold project in Peru, after the company defaulted on a forward gold purchase deal.
The assets up for security under the gold purchase agreement belonged to Century Mining, which White Tiger bought last year for around C$743-million.
Without Century’s assets, White Tiger reverts to being an eastern Russia-focused gold producer, where it owns the Savkino and Nasedkino projects.
Century mining had reopened its flagship Lamaque mine, located near Val d’Or in 2010, aiming to ramp-up production to 2 000 t/d of ore by the middle of last year.
A series of stumbling blocks, including less ore reserves than a 2009 report calculated, mining problems, and a delay by the Quebec Ministry of Durable Development, Environment and Parks, were to blame for not reaching production targets, White Tiger said in a statement released late on Friday.
“...Continued investment would entail increasing risk, which if not successful, could have further jeopardised White Tiger's financial position,” the company added.
White Tiger also announced it was in talks to renegotiate loan deals with its two biggest shareholders, from which it said on May 14 it would receive $8-million each.
At the time, it said it would also pay new stock to them, expanding its issued share capital by some 30%.
"Depending upon the results of such discussions, such loan transactions may be restructured and resubmitted to the TSX for approval," White Tiger said.