VANCOUVER – Coal miner Goldsource Mines Inc. (TSXV:GXS) has killed a merger agreement with Zero Emission Energy Plants Ltd. after difficulties completing a financing.
Goldsource said a number of conditions, including completion of an $ 11-million financing “do not now appear to be achievable on a timely basis.”
“Raising the necessary financing has been a challenge for ZEEP in these volatile markets and we are disappointed that the current difficult market conditions have precluded the raising of the requisite funds on a timely basis,” Goldsource president Scott Drever said in a statement.
Amendments to a technology licensing agreement with Pratt Whitney Rocketdyne covering coal gasification technology have made “the terms of the ZEEP transaction significantly less attractive from Goldsource’s perspective.”
Drever said the two companies remain in discussions over other possible deals that could give it access to the technology for use in developing its Border coal deposit in Saskatchewan.
Local news from metronews.ca/vancouver
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