Interesting announcement from small gold miner Firstgold. A unit of the Treasury department has informed it that it will seek to block a a planned investment from China.:
Firstgold Corp. (TSX: FGD) (PINKSHEETS: FGOC) (“Firstgold” or “the Company”) has been advised by The Committee on Foreign Investment in the United States (“CFIUS”) that they will, on Dec 21st, recommend to President Obama that he reject the proposed investment by the China-based company Northwest Non Ferrous International Investment Company Ltd. (“Northwest”) in Firstgold. CFIUS has determined through their investigation that serious, significant and consequential national security issues existed. In particular they noted the proximity of Firstgold’s properties to the Fallon Naval Air Station and related facilities. CFIUS had considered several mitigation possibilities and concluded that none would sufficiently resolve the national security issues.
“This is very difficult news to receive. While we certainly respect the process CFIUS has taken to arrive at their determination, we disagree 100% with their conclusion. We fail to see the connection between US national security and our principal asset the Relief Canyon mine, which has existed at its present location since the early 1980s. Our property is over 50 miles away from the Fallon base and surrounded by several other mining properties. At this stage we understand on Dec 21st that CFIUS will recommend rejection to President Obama. Our hope would be that his review of the matter will lead to a different and positive conclusion,” commented Terry Lynch Firstgold CEO.
“You can imagine how discouraging this is for Northwest. At this stage we do not know what their intentions are although we remain hopeful that we can yet find a way to close the transaction. In the interim Firstgold is reviewing other options to bring Relief Canyon into production and to obtain value for its assets.”
Firstgold has spent $16 million over the last 24 months developing a processing facility at Relief Canyon, located outside Lovelock Nevada, on the site of the previously producing Pegasus Gold Mine. Additional information about Firstgold Corp. can be found by visiting its web site at www.firstgoldcorp.com
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