AFRICA — McVicar explores in Sudan

Toronto-based McVicar Minerals (MVR-A) intends to buy the Shulai gold property in Sudan.

The company plans to issue 400,000 shares to the property owner, Dongling Holdings Hong Kong, which, in turn, has agreed to buy an additional 200,000 shares of McVicar at $1.10 each. Each share comes with a warrant exercisable for one year at $1.20.

The deal also calls for a Dongling representative to be appointed to McVicar’s board of directors.

The 4,000-sq.-km property lies in the Ariab-Oshib-Arbaar greenstone belt, which extends southwest from the coast of the Red Sea for 250 km. The belt consists of Proterozoic volcanic and sedimentary rocks.

Shulai occupies the northeastern portion of the greenstone belt, which includes the Ariab gold mine of LaSource, a partnership of Normandy Mining (NDY-T) and the French agency Bureau de recherches geologiques et minires (BRGM).

Previously at Shulai, BRGM located three gold zones: Little Shulai, Ashai and Hashay. Most of the work, including a 9-hole drill program, was completed on Little Shulai.

Mineralization is associated with a dark red gossan in altered felsic volcanics, which can be traced on the surface for almost 1.5 km.

McVicar’s President, Dr. Gang Chai, says the company is one of only a few Western mining companies in the predominantly Muslim country. It is believed to be the only Canadian company operating there.

McVicar is awaiting government approval of the transaction, whereupon it will begin a 1,200-metre drill program.

The company completed its initial public placement in May 1997 and has 4.5 million shares outstanding.