Barberton Mines Limited – a gold operation in South Africa

So that we can focus on our developing and managed projects, we chose to dispose of our 20% interest in Barberton after June 30, 2006.

In February 2003, the Corporation, as part of a consortium of buyers, signed an agreement with Avgold Ltd. of South Africa for the purchase of Eastern Transvaal Consolidated (now Barberton Mines Limited). The consortium consisted of Metorex Ltd (54%), MCI Resources Ltd (26%), and Crew (20%).

The three small gold mines at Barberton have been in operation for up to 100 years, and at intervals the remaining life of each of the mines has often been forecast as only six to ten years.

Sale of 20% interest concluded
In order to focus on its developing and managed projects, the Corporation chose to dispose of its interest in Barberton subsequent to June 30, 2006. The gain on the sale, to be recorded in the first quarter of fiscal 2007, was approximately $7 million.