Australians may buy Red Arrow

A New York-based hedge fund has provided an Australian company with the financing to secure the Red Arrow gold mine outside of Mancos.

A Dec. 11 company press release reveals that Queensland, Australia-based Alycone Resources has secured roughly $22.6 million from New York-based hedge fund Platinum Partners to fund precious-metals acquisitions. The Red Arrow gold mine is on Alycone’s radar.

“The company is embarking upon a plan to aggressively build a world-class portfolio of precious-metals projects through the acquisition and consolidation of high grade and undervalued precious-metals assets globally,” the press release states.

Part of its growth strategy, Alcyone Resources entered into the agreement to acquire the Red Arrow mine from Platinum Partner’s precious metals project for A$5 million, slightly more than $4.5 million in U.S. currency, the press release added.

The Red Arrow gold and silver mine is about 9 miles northeast of Mancos in the La Plata Mountains. The property consists of 370 acres of patented mining claims and 160 acres of unpatented mining claims.

“Through the acquisition of the Red Arrow Mine in a renowned mining area of Colorado, we are well placed to add a second world-class precious-metals project to our portfolio, which has excellent development potential, with high gold and silver concentrations and nearby access to a maintained public road system,” said Alcyone non-executive chairman Paul D’Sylva.

Alcyone operates a silver mine in Queensland.

The Red Arrow Dome is a major geological structure in the area and has the potential to be developed into a significant gold, silver, copper and platinum group metals resource in addition to ore production, the press release stated.

“An exciting opportunity exists for Alcyone to introduce modern and established mining and processing techniques in order to mechanize the ore production utilizing best Australian mining practices to extract the maximum benefit of a high-grade asset,” the company stated.

Last month, District Court Judge Todd Plewe granted a motion by Maximilian Investors to discharge Jaeger Kottmeier Associates, the court-appointed receiver of the gold mine. The order, however, didn’t clear the receiver of all potential civil claims from Boyd Sanders, owner of property leased to and polluted by Red Arrow owner Craig Luikko.

The district court case in Colorado has been stayed until bankruptcy matters in Texas are resolved between investors. A hearing before Plewe is scheduled for Friday, Dec. 13.