Saturday, December 19, 2009

Treasury Wants to Block Chinese Investment in Gold Stock

File under: "Looking for backstory on this one."

This appears very strange and will only irritate the Chinese, who as we all know are huge buyers of Treasury securities.

Firstgold Corp., which trades on the Pink Sheets and in Canada, has been advised by The Committee on Foreign Investment in the United States ("CFIUS"), that they will, on Dec 21st, recommend to President Obama that he reject the proposed investment by the China-based company Northwest Non Ferrous International Investment Company Ltd. in Firstgold.

CFIUS is a unit of the Treasury.

According to Firstgold, CFIUS has determined through their investigation that serious, significant and consequential national security issues existed. In particular they noted the proximity of Firstgold's properties to the Fallon Naval Air Station and related facilities. CFIUS had considered several mitigation possibilities and concluded that none would sufficiently resolve the national security issues.

"This is very difficult news to receive. While we certainly respect the process CFIUS has taken to arrive at their determination, we disagree 100% with their conclusion. We fail to see the connection between US national security and our principal asset the Relief Canyon mine, which has existed at its present location since the early 1980s. Our property is over 50 miles away from the Fallon base and surrounded by several other mining properties. At this stage we understand on Dec 21st that CFIUS will recommend rejection to President Obama. Our hope would be that his review of the matter will lead to a different and positive conclusion," commented Terry Lynch Firstgold CEO.


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