Placer Dome buys shares of Pan Orvana

The proceeds of a recent private placement by Placer Dome (TSE) will be used by Pan Orvana Resources to carry out exploration in south-central British Columbia and north-central Washington. The programs will focus on precious and base metal opportunities, particularly gold skarn deposits. Pan Orvana received proceeds of $405,000 after Placer Dome bought 368,788 of its shares for $1.10 per share. The two companies also executed the OK Syndicate agreement which allows the private junior company to manage and direct the exploration programs.

Properties acquired under the syndicate agreement will, at Placer’s election, be further explored under a joint venture agreement with Placer holding a 70% interest and Pan Orvana a 30% interest. The major is to provide all funding until a production decision is made, at which time Pan Orvana can elect to fund its 30% interest or accept a 15% net proceeds interest.

Pan Orvana President Robert Watts said the syndicate agreement is part of a continuing program by the company to explore for large deposits in geologic areas that show promise of extensive mineralization.

“The company is conducting four other regional programs, including one in Chile, that will form the basis of additional syndicates,” he added.

Pan Orvana also sold 454,545 of its common shares to Rio Algom (TSE) at $1.10 per share to realize $500,000. This completes the third instalment of shares sold to Rio Algom under a previously announced agreement.