Echo Bay Will Sell Mexico Gold Option

Echo Bay Mines Ltd. of Englewood, Colo. said it will sell its option to acquire a 60 percent interest in a gold project in Mexico.

The mining company, which operates the Kettle River project near Republic, said it will sell the option at the Dolores gold exploration project to Minefinders Corp. Ltd. for $4 million in Canadian dollars and 1.25 million common shares of Minefinders. The sale will give Minefinders 100 percent interest in the property.

Echo Bay already owns almost 18 percent of Minefinders common shares. This move means Echo Bay can still reap 25 percent interest in Minefinders and the property indirectly, but not have to pay for required exploration expenses, Echo Bay company officials said.

, DataTimes