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N.American Palladium walks away Posted: Wed, 10 Sep 2008 [miningmx.com] -- NORTH American Platinum decided not to follow its rights at the Arctic Platinum Project in Finland, meaning the project has reverted to full management control of Gold Fields. NAP said early in August that it would not deliver a positive feasibility study for the APP because of high steel and diesel prices as well as the strong euro against the dollar. “Other variables have adversely impacted the estimated capital cost of the project,” it said. It said at the time it would talk to Gold Fields about “strategic options” for APP. Gold Fields said under the joint venture agreement struck in March 2006 NAP could take up to 60% of APP by spending some $12.5m on the project and make a decision before the end of August 2008 if it was going to build a mine there. “NAP has informed Gold Fields that it will not follow its rights in terms of the agreement and therefore the option has expired and the agreement has been terminated,” Gold Fields said. “With effect from 1 September 2008, Gold Fields has therefore taken full control and management of APP and will explore ways in which to realise value for its shareholders from this asset,” it said. The most likely option would be for Gold Fields to find a buyer for the project, said Leon Esterhuizen, an analyst with RBC Europe. Click Here to subscribe to
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