via Kitco - Mining Weekly

"Deutsche to take over White Tiger's Century assets

By: Matthew Hill 28th May 2012

JOHANNESBURG (miningweekly.com) – Toronto-quoted White Tiger Gold on Friday said Deutsche Bank had chosen to take over its Lamaque gold mine in Quebec, as well as the San Juan gold project in Peru, after the company defaulted on a forward gold purchase deal.

The assets were up for security under the gold purchase agreement belonged to Century Mining, which White Tiger bought last year for around C$743-million.

Without Century’s assets, White Tiger reverts to being an eastern Russia-focused gold producer, where it owns the Savkino and Nasedkino projects.

Century mining had reopened its flagship Lamaque mine, located near Val d’Or in 2010, aiming to ramp-up production to 2 000 t/day of ore by the middle of last year."

Mining Weekly

Note Agnico's Lapa mine and Lamaque have almost identical geology to Roy Lloyd. I have compared Roy Lloyd with Lamaque from a geological perspective, though you can probably find similar geology throughout Canadian gold belts.

This is financial disaster for White Tiger. Not the kind of news you would expect in a gold bull market at all, but hedging your production in a rising trend is guarateed to get you a shut down.

White Tiger was a hostile takeover to nobody's satisfaction, and it turns out they killed the goose that laid the golden egg.

-F6