E. Ore. gold mine sold to Canadian company
Tuesday, February 14, 2012
BAKER CITY, Ore. (AP) -- A Canadian company has purchased the Bonanza Mine in Eastern Oregon's Baker County and plans to start exploratory work this spring at the gold mine.
Marathon Gold Corp. of Toronto bought the Bonanza in December from Gazelle Land and Timber LLC of Canyon City. In a news release, Marathon says it paid $125,000 plus 300,000 shares in the company.
Gazelle will receive a 2 percent royalty on any gold processed from the mine. Gazelle also retains timber rights on the 300-acre property for 20 years. Gazelle bought the mine in June 2009.
The Baker City Herald reports (http://bit.ly/Al3Esf ) that the Bonanza was one of Baker County's richer mines during the late 19th century. It didn't produce much until the Geiser family took the property in 1890 in lieu of a $2,000 debt. Over the next nine years the mine's production reportedly averaged $300,000 per year.
Information from: Baker City Herald, http://www.bakercityherald.com/