LATIN AMERICA — NEWS ROUNDUP — Santa Cruz sells Lluvia de Oro

Toronto-based Santa Cruz Gold (SCG-T) is selling its suspended Lluvia de Oro gold mine in Mexico’s Sonora state.

The company is to receive US$120,000 in cash from the unnamed buyer and will remove itself from certain liabilities. In addition, Santa Cruz has received a $900,000 tax refund from the Mexican government.

The sale follows on the heels of a proposed merger with Queenstake Resources (QTR-T). That deal is expected to close in June, subject to shareholder and regulatory approval, a due diligence review and the amalgamation of Santa Cruz with privately owned Castle Exploration (T.N.M., April 12/99).

Santa Cruz remains active in Mexico through its Magistral gold property in the western state of Sinaloa. A feasibility study on that project, to begin in the next few months, will focus on a 35,000-oz.-per-year mine.