The 79 Times: Gold News for 20 Feb. 2007

Goldcorp (NYSE: GG) has signed a letter of intent to sell its Peak mine in Australia and its Amapari mine in Brazil to GPJ Ventures Ltd. (NEX: GPJ.H), which as a result will change its name to Peak Gold. Under the terms of the agreement, Peak Gold will pay C$200 million, as well as C$100 million payable in Peak Gold shares, for the mines. On completion of the sale, Goldcorp will own approximately 24% of Peak Gold.

Australian gold mining stocks were mixed yesterday, after the share market reached a new intraday high of 6003.2 points and closed up 36.4 points to 5990.1 points. Newcrest (ASX: NCM) gained 9c to AUD$21.92, Lihir Gold (ASX: LHG) added 8c to AUD$3.36 and Newmont (ASX: NEM) went down 3c to AUD$5.85.

The spot gold price was slightly higher, closing Sydney trading at USD$673.15 an ounce, up USD$4.30 an ounce on Friday’s local close.

Carrick Gold (ASX: CRK) has announced its intention to make an off-market bid for Shannon Resources (ASX: SHA). Shareholders of Shannon Resources will be offered AUD$0.10 cents for each fully paid share and 1 fully paid Carrick Gold share for every 2 shares held in Shannon Resources.

Frank Carr, the Executive Chairman of Carrick Gold – and also the Chairman and largest shareholder of Shannon Resources, holding approximately 40 per cent of the issued capital of Shannon Resources – has indicated that he will accept the offer from Carrick Gold in the absence of a higher bid from any other party.

A drilling program is set to commence at Queensland Gold and Minerals’ (ASX: QGM) Waroo project in southeast Queensland, in which Oxiana (ASX: OXR) will earn an 80% stake through the contribution of AUD$4 million. Oxiana had previously recorded ‘highly encouraging results’ from its sampling program at the project, with rock chips assaying between three and 30 grams of gold per tonne in an area not previously sampled.


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