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New Controlling Interest in Sutter Gold Mine |
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Tuesday, 17 June 2008 |
 A subsidiary of a South African investment bank has agreed to buy the controlling interest in Sutter Gold Mining Company, owner of Amador County’s only modern underground hard rock gold mine between Sutter Creek and Amador City. The mine was in operation from 1989 to 1991, when the price of gold dropped and operation costs began to exceed profit. In the last year, however, the price of gold has skyrocketed, and the mine has entertained several interested investors. RMB Resources, as trustee for the Telluride Investment Trust investment fund, has now agreed to buy shares of the gold company for about 5.25 million dollars from U.S. Energy Corporation. The deal, expected to close in July, would give RMB 49.9 percent of Sutter Gold's common shares, according to a news release. U.S. Energy has delivered a power of attorney to RMB, giving RMB the right to vote on the common shares of Sutter Gold now owned by U.S. Energy. The mine controls a 3.2-mile segment of the historic Mother Lode gold belt. Sutter Gold Mining Company has drilled extensively for exploration and plans to build a mill on the site. In addition, the company has a subsidiary in El Alamo, Mexico. "The transaction, if concluded, will allow (Sutter Gold) to aggressively move forward with our gold project in California," Sutter Gold president and chief executive officer Hal Herron said in the news release. "RMB is internationally recognized for identifying and financing natural resource projects and companies.”
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Last Updated ( Monday, 30 June 2008 )
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