An active gold mine in Amador County could have a new major shareholder as part of a debt restructuring for Sutter Gold Mining Inc.
The move, if successful, could have the mine operating by the end of this year. It is dependent on financing, which could take two months.
Sutter, Tyhee Gold Corp. and RMB Australia Holdings Ltd. have agreed to a recapitalization of the company pending certain conditions.
RMB, which owns 47 percent of company stock and is owed $40 million, would sell its shares to Tyhee.
The complex financing also includes Tyhee also successfully raising money in a special purpose vehicle.
At the end of the deal, which could take two months to close, RMB will have 90 million of Tyhee shares and be owed $15 million by Sutter. Sutter would have $17 million in capital to restart the mine, and Tyhee will own 72 percent of Sutter shares.
Once the money is in place, it should take four months to begin operating the mine.
Tyhee is based in Vancouver, British Colombia, and is traded on the Toronto exchange (TSX-Venture: TDC). Sutter is also based in Vancouver, B.C., and is traded on the same exchange {TSXV: SGM).
After running into technical difficulties with the Lincoln Mine in March, Sutter Gold Mining also ran out of capital to continue mining operations, and the company suspended active mining and has held the mine in maintenance. The mine has all permits and approvals to begin active mining.
Mark Anderson covers technology, banking and finance, medtech and biotech, venture capital, energy, mining, hotels, restaurants and tourism for the Sacramento Business Journal.
