Minco Gold has provided an update on the Tugurige Gold Project. The company had earlier announced that it had entered into a joint venture with 208 Exploration Team, which is a subsidiary of China National Nuclear Corporation through its own 100% subsidiary Minco Mining.
As per the agreement Minco Gold is to purchase 51% interest in the Tugurige Gold Project which is located in Inner Mongolia in China.
However 208 Team has not complied with the conditions laid out in the Joint Venture agreement. Particular conditions that were not complied with included the company’s responsibility to set up a new entity company called the JV co and its obligation to transfer its 100% interest in the Tugurige Gold Project. Due to the non-compliance from 208 Team, Minco Gold is in the process of resolving its dispute with 208 Team and due to this; the company has delayed the commissioning of the NI 43-101 compliant resource estimate on the property.
Minco China had earlier paid an advance consideration of C$9 million for the Tugurige Gold Project through the form of secured short term loans which were guaranteed by 208 Team. This consideration along with the interest has not yet been repaid to Minco China. The joint venture can be implemented only on the basis of approvals from the governmental agencies of China. Though the company is in the process of seeking these approvals, the confirmation of these approvals is not guaranteed.