Business
Goldrich Mining Reports Dissolution of Joint Venture
SPOKANE, WA / ACCESSWIRE / August 8, 2019 / Goldrich Mining Company (OTC PINK:GRMC) (“Goldrich” or the “Company) announces the dissolution of Goldrich NyacAU
About this update from Goldrich Mining Company
[{"type":"text","content":"SPOKANE, WA / ACCESSWIRE / August 8, 2019 / Goldrich Mining Company (OTC PINK:GRMC) (“Goldrich” or the “Company) announces the dissolution of Goldrich NyacAU Placer, LLC (“GNP”), a 50/50% joint venture between Goldrich and NyacAU, to mine the various placer deposits that occur throughout Goldrich’s 23,000-acre Chandalar gold project in Alaska. The certificate of dissolution was received in July with an effective date of June 3, 2019. NyacAU is the manager of the GNP joint venture. The joint venture was dissolved because GNP failed to meet the Minimum Production Requirements. According to the terms of the joint venture operating agreement, GNP was required to pay a contractual Minimum Production Requirement of 1,100 ounces for 2016, 1,200 ounces for 2017, and 1,300 ounces for 2018 to Goldrich by October 31, 2018. The Minimum Production Requirement for each year was determined based on the spot price of gold on December 1 of the preceding year. GNP’s lease to mine the placer properties terminates upon dissolution of GNP and GNP has no further rights to mine the placer properties located on Goldrich’s mining claims. NyacAU, as the manager of GNP, shall act as liquidator to wind up the Company within one (1) year, or such longer period as may be agreed to in writing by the joint venture members. If NyacAU cannot or does not accomplish the liquidation within one (1) year or any agreed upon extension, Goldrich shall complete the liquidation. Most of the equipment used by the joint venture has already been moved off the mine site. Goldrich and NyacAU are currently in arbitration and are awaiting the rulings of the arbitration panel. Under the terms of the GNP Operating Agreement, rulings from the three-person arbitration panel are final. The outcome of the arbitration is not yet determined and cannot be estimated or assured. Goldrich is in the process of developing a mine plan for the Chandalar gold project. As previously announced, the Chandalar mine production for 2018 was 20,900 ounces of raw placer gold, which is approximately equivalent to 17,100 ounces of fine gold. This compares to production in previous years as follows: Year Ounces of Placer Gold Ounces of Fine Gold 2015 4,400 3,900 2016 10,200 8,200 2017 15,000 12,300 2018 20,900 17,100 The 2018 production ...