Andover Ventures (AOX.V) is a small mineral exploration company. The company’s current flagship property, the SUN property, is located in the Ambler Mining District of the Brooks Range in north-central Alaska. The company has a 100% interest in this property. The property is believed to contain both base metals and precious metals such as gold, silver, copper, zinc, and lead. The company is anxiously awaiting the results of the 2007 work/drill programs.
Andover’s management was not sitting idly while awaiting these results. After two years of working on a major deal, on May 27, 2008 Andover finally announced the acquisition it had worked so long to attain.
The company purchased an approximate 65% interest in Chief Consolidated Mining Co., a Genco Resources subsidiary located in Utah. Chief Consolidated Mining’s core asset is located one hour south of Salt Lake City, and has been around for decades. The property is about 19,000 acres and lies within an area referred to as the EastTintic District. In the past, the property has been very productive, and at current prices the total metal value of the zinc, lead, silver, and gold on the property is estimated to be approximately $1 billion.
Chief Consolidated Mining ran into problems with the US Environmental Protection Agency (EPA) in 2005, incurring a $60-million fine which essentially forced the company into liquidation. The company’s assets were under the control of a fund (as principal shareholder) and the EPA eventually resolved the issues through a settlement agreement, which included a consent decree. After a lengthy, two-year process, Andover is now pleased to be in possession of the assets along with a copy of the consent decree from the EPA.
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