Sale viewed as a positive development
Darrell Greer
Northern News Services
Rankin Inlet (May 21/01) - The pending sale of the Meliadine West Gold project could prove to be a positive move in the site's development.
The Australian-based Western Mineral Company Ltd. (WMC) announced this past week that the site, 20 kilometres north of Rankin Inlet, is included in sale or merger plans for its gold business unit.
The company previously stated the Meliadine West Gold project was not included in its sale or merger plans.
WMC (the operator) has a 56 per cent interest in the site, with Comaplex Minerals Corp. and Cumberland Resources Ltd. each holding 22 per cent.
Comaplex president George Fink says a new owner will bring renewed enthusiasm to the project.
"If you're getting out of your gold business unit, you're probably not as enthused about gold properties as you are some of your other holdings," he says.
"WMC has probably known for the past year that, on a philosophical basis, gold no longer fit into its long-term plans."
Fink says industry speculation is that buyer pressure led to the project being included in WMC's sale or merger plans.
"I believe WMC's intentions were real when they said initially they were not going to sell this along with their gold business unit.
"Potential buyers probably put on a lot of heat for this property because they always want an exploration upside when they're buying a producing property."
Fink says Comaplex management was taken by surprise when stock prices actually rose after the announcement.
He says this is further proof partners and shareholders alike are looking at new owners being a positive development.
"If something were to close by the end of July, the new company may be able to get a program going for the latter part of this year.
"The fact there may not be a large program done on the site this year is the lone negative aspect of this development.
"This site still has a high possibility of being a producing mine and will benefit from the enthusiasm and aggression a new owner will bring to the project."
