Post by Sapphire Capital on Jul 14, 2008 1:45:49 GMT 4
July 12, 2008
Rusoro Mining Ltd. (TSXV:RML) has been selected as a "partner of choice" of the Venezuelan government for gold mining opportunities.
The Vancouver-based company also said Thursday that it has received the government's approval to complete the US$25 million acquisition of Hecla Mining Co.'s Venezuelan assets.
These include the Block B Isidora mining leases and the Camorra mill facility in Bolivar State.
Under the deal, Rusoro is paying US$20 million in cash and 4.3 million shares worth about $5 million for Hecla's assets.
Rusoro and the Venezuelan Ministry of Mines and Basic Industries have agreed to establish a mixed enterprise involving Empresa de Produccion Social Minera Nacional C.A., a ministry subsidiary, and Rusoro on a 50-50 basis, the mining company said.
The enterprise is expected to be formalized within the next six months and will carry on gold exploration, development and mining activities in the areas being acquired from Hecla, Rusoro said.
The mixed enterprise also creates an operating gold company for Rusoro and the Venezuelan government to examine further gold mining and development opportunities in the country for the benefit of all stakeholders.
The definitive terms of the mixed enterprise remain to be finalized between the mines ministry and Rusoro. Until such terms are finalized, Rusoro will own and operate the Hecla-Venezuela assets.
"We are delighted to be selected as the partner of choice for gold mining opportunities in Venezuela and we look forward to exploring further opportunities for the benefit of our new partner, our committed shareholders and for the local communities involved in the gold mining industry in Venezuela," stated Rusoro CEO Andre Agapov.
Last fall, Rusoro expanded its holdings in Venezuela by arranging a US$210-million financing deal to help it acquire Gold Fields Ltd.'s assets, including the producing Choco 10 mine in Bolivar state.
The junior miner said the acquisition was worth more than US$516 million. Gold Fields is now a significant shareholder of Rusoro, with a 38 per cent stake.
On the Venture Exchange on Thursday, Rusoro shares were trading up 15 cents, or more than 14 per cent, at $1.20 on 228,400 shares traded.
Rusoro Mining Ltd. (TSXV:RML) has been selected as a "partner of choice" of the Venezuelan government for gold mining opportunities.
The Vancouver-based company also said Thursday that it has received the government's approval to complete the US$25 million acquisition of Hecla Mining Co.'s Venezuelan assets.
These include the Block B Isidora mining leases and the Camorra mill facility in Bolivar State.
Under the deal, Rusoro is paying US$20 million in cash and 4.3 million shares worth about $5 million for Hecla's assets.
Rusoro and the Venezuelan Ministry of Mines and Basic Industries have agreed to establish a mixed enterprise involving Empresa de Produccion Social Minera Nacional C.A., a ministry subsidiary, and Rusoro on a 50-50 basis, the mining company said.
The enterprise is expected to be formalized within the next six months and will carry on gold exploration, development and mining activities in the areas being acquired from Hecla, Rusoro said.
The mixed enterprise also creates an operating gold company for Rusoro and the Venezuelan government to examine further gold mining and development opportunities in the country for the benefit of all stakeholders.
The definitive terms of the mixed enterprise remain to be finalized between the mines ministry and Rusoro. Until such terms are finalized, Rusoro will own and operate the Hecla-Venezuela assets.
"We are delighted to be selected as the partner of choice for gold mining opportunities in Venezuela and we look forward to exploring further opportunities for the benefit of our new partner, our committed shareholders and for the local communities involved in the gold mining industry in Venezuela," stated Rusoro CEO Andre Agapov.
Last fall, Rusoro expanded its holdings in Venezuela by arranging a US$210-million financing deal to help it acquire Gold Fields Ltd.'s assets, including the producing Choco 10 mine in Bolivar state.
The junior miner said the acquisition was worth more than US$516 million. Gold Fields is now a significant shareholder of Rusoro, with a 38 per cent stake.
On the Venture Exchange on Thursday, Rusoro shares were trading up 15 cents, or more than 14 per cent, at $1.20 on 228,400 shares traded.