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Post by Franko10 ™ on Oct 13, 2004 20:38:31 GMT -5
NEW YORK -- St. George Metals Inc., a Nevada gold miner, said last week "severe cash shortages" have forced it to cease operations at its Dean Mine and it is contemplating "a financial restructuring pursuant to court protection."
In a statement released in Richmond, Va., by Virginia businessman C. B. Robertson III, who was elected chairman of St. George Metals last week, the company said it would be unable to resume operations unless it "is successful in putting in place additional financing."
Richmond-based Reynolds Metals Co. early in 1991 pulled out of a gold exploration program in Nevada with Houston-based St. George Metals after two years of unsuccessful drilling.
Reynolds Metals earlier this month announced plans to sell its 40-percent stake in Australia's third-largest gold mine, the Boddington, located near Perth in Western Australia.
Coincidentally, Reynolds' long-time corporate logo depicts St. George slaying the dragon, but there was no connection between St. George Metals and the aluminum and packaging giant prior to an agreement in principle entered into in 1988 relating to the Nevada properties.
A spokesperson in St. George's Houston office said Friday that Robertson also had been made chief executive officer.
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