Rogue Resources Inc. withdrew from the letter of intent to acquire the Golden Arrow gold mine in Ontario after it failed to secure an adequate toll mill agreement.
The company entered into the letter of intent in October to buy Victoria Gold Mines East Timmins Ltd. from a Timmins, Ontario-based resource developer.
Victoria Gold Mines owns the early-stage Golden Arrow gold project, which covers more than 700 hectares of patented and staked mining claims.
The deal was expected to close in December, subject to various factors including engaging a contract operator and toll miller and finalized project financing.
Rogue said Dec. 20 that it allowed a planned private placement to expire earlier in the month, based on the uncertain status of the Golden Arrow analysis and marketing for its Snow White project in Ontario.
The company is in cash preservation mode and has minimized all cash expenses over the past two months and into the foreseeable future.