Hanover Gold Co. Inc.

• Public
• US

Dow Jones Description

GENERAL DEVELOPMENT OF BUSINESS. The Company is an exploration stage mining company organized under Delaware law in 1984. The Company holds mining properties in the historic Virginia City Mining District of southwestern Montana and in Chile, South America. The Montana properties presently comprise 204 claims, of which 169 are located in the Virginia City district and 35 are located at Norris and Pony, Montana, some 35 miles away. The Company acquired these claims, and approximately 575 other claims and several state leases (principally in the Alder Gulch area), beginning in 1990, primarily through a series of subleasing and option agreements with affiliated and non-affiliated parties, and through the merger of affiliated and non-affiliated companies in exchange for stock. In September and October 1998 the Company made the decision to terminate its leases with three of its landowner-lessors primarily due to the passage of a Montana initiative, I-137, and the high cost of maintaining the leases. The initiative, which became law in November 1998, precludes new or expanded open pit mining operations from using cyanide in the process of extracting gold and silver. 239 claims were relinquished as a result of having terminated the leases and consequently, in 1998, the Company wrote-off the carrying value of mineral interests having a book value of approximately $12,000,000.

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