Rankin Inlet (Feb 10/03) - Sakku Investments Corp. is ready to try its hand at the gold mining industry.

Sakku, a wholly owned subsidiary of the Kivalliq Inuit Association (KIA), announced its intentions this past week.

The company is partnering with Andaurex Industries Inc. to pursue the acquisition of WMC International Ltd.'s 56 per cent interest in the Meliadine West property, located 20 kilometres north of Rankin.

The two companies have signed a memorandum of understanding to authorize Andaurex to negotiate the acquisition of WMC's interest in the property on behalf of Sakku.

KIA president Tongola Sandy says the mandate of the new company will be to directly participate in the development of the Meliadine and other potential projects in the Kivalliq region.

"This is a ground-breaking approach that will provide much greater Inuit participation in determining employment, training and business opportunities and in establishing environmental mitigation measures and reclamation requirements," says Sandy.

"It will also greatly increase the economic benefit realized by the beneficiaries of the Nunavut Land Claims Agreement from the development of their natural resources."

If Andaurex is successful in striking a deal, Sakku would have the right to buy the property interest.

Sakku would then sell the interest to Andaurex in exchange for shares in that company.

Andaurex would then own the property interest and Sakku would become the largest shareholder in the company.

Andaurex president Gregory Bowes says that's an important part of the process because Andaurex, a publicly listed company, is going to need money to finance development of the project.

"The plan is to raise the money through the stock market," says Bowes.

"As such, Sakku is not going to be putting any cash directly into the project.

"The plan is to raise any financing required through the capital markets."