News
The contentious Idaho-Maryland Mine project is “on hold,” mine CEO David Watkinson said recently after a funding source recently fell through.
“We're going slowly until we get the funds to move forward” to complete the environmental impact report, Watkinson said last week.
“Anything that delays it is good,” said Ralph Silberstein, a leader in the mine's opposition group, Claim-GV. “The more time we can have with clean air and less pollution, the better.”
In July, the mine's parent firm, Canada-based Emgold, and Watkinson said they were seeking up to $6 million, with $2.9 million in interim financing from Dunn Capital Partners, to complete the report.
Emgold recently announced it had cut off negotiations with Dunn. Watkinson said his firm was partly scared off by a lawsuit filed by another company against Dunn for allegedly not coming through on a similar financing deal.
“We've had another firm come in, but they want to wait until we consolidate the company” with a program designed to drive up the value of Emgold's shares. The move would push Emgold shares out of their penny-stock status. Emgold was trading for 5 cents on the Canadian stock market Monday.
Watkinson said he could not divulge who the new financier is, but expected the announcement in a few weeks when the consolidation is complete.
“We're still four years away from production,” Watkinson said. Before that, the mine must complete the environmental report and get permits to open and de-water the shafts.
The environmental report is being redone because the project no longer proposes a water treatment plant on East Bennett Road. The plant would have de-watered the mine and sent treated water down the south fork of Wolf Creek.
Now the plan is to pipe the water from the New Brunswick shaft across the property to another treatment plant next to the planned main operation along Idaho-Maryland Road.
The mine corporation will also have to pay to reissue the environmental report, Grass Valley Planning Director Tom Last said.
What that will cost is unknown, as Idaho-Maryland has submitted nothing in writing about the changes. The mine corporation gave the city $1 million to pay consultants ESA of Sacramento for earlier environmental report work.
The mine may also move out of its rented headquarters on Clydesdale Court above the mine property to save operating costs, Watkinson said. The property is up for sale or lease and Watkinson said the firm does not need the entire 44,000 square feet and would prefer to lease with another tenant if it stays.
The Golden Bear Ceramics plant at the site is also “in a holding pattern,” Watkinson said, because of a lack of financing. The company is seeking financing for the plant that would produce building tiles from mine waste, but “it's hard to raise money for it right now,” given the economy, Watkinson said.
To contact Senior Staff Writer Dave Moller, e-mail dmoller@theunion.com or call 477-4237.
“We're going slowly until we get the funds to move forward” to complete the environmental impact report, Watkinson said last week.
“Anything that delays it is good,” said Ralph Silberstein, a leader in the mine's opposition group, Claim-GV. “The more time we can have with clean air and less pollution, the better.”
In July, the mine's parent firm, Canada-based Emgold, and Watkinson said they were seeking up to $6 million, with $2.9 million in interim financing from Dunn Capital Partners, to complete the report.
Emgold recently announced it had cut off negotiations with Dunn. Watkinson said his firm was partly scared off by a lawsuit filed by another company against Dunn for allegedly not coming through on a similar financing deal.
“We've had another firm come in, but they want to wait until we consolidate the company” with a program designed to drive up the value of Emgold's shares. The move would push Emgold shares out of their penny-stock status. Emgold was trading for 5 cents on the Canadian stock market Monday.
Watkinson said he could not divulge who the new financier is, but expected the announcement in a few weeks when the consolidation is complete.
“We're still four years away from production,” Watkinson said. Before that, the mine must complete the environmental report and get permits to open and de-water the shafts.
The environmental report is being redone because the project no longer proposes a water treatment plant on East Bennett Road. The plant would have de-watered the mine and sent treated water down the south fork of Wolf Creek.
Now the plan is to pipe the water from the New Brunswick shaft across the property to another treatment plant next to the planned main operation along Idaho-Maryland Road.
The mine corporation will also have to pay to reissue the environmental report, Grass Valley Planning Director Tom Last said.
What that will cost is unknown, as Idaho-Maryland has submitted nothing in writing about the changes. The mine corporation gave the city $1 million to pay consultants ESA of Sacramento for earlier environmental report work.
The mine may also move out of its rented headquarters on Clydesdale Court above the mine property to save operating costs, Watkinson said. The property is up for sale or lease and Watkinson said the firm does not need the entire 44,000 square feet and would prefer to lease with another tenant if it stays.
The Golden Bear Ceramics plant at the site is also “in a holding pattern,” Watkinson said, because of a lack of financing. The company is seeking financing for the plant that would produce building tiles from mine waste, but “it's hard to raise money for it right now,” given the economy, Watkinson said.
To contact Senior Staff Writer Dave Moller, e-mail dmoller@theunion.com or call 477-4237.
