In return for cash, shares and reserve payments, Carson Gold (VSE) can acquire the Lote Delta and Nueva Alaska gold concessions in the Kilometre 88 region of Venezuela.
The 5,000-acre Lote Delta ground is on the northern border of the Oro Uno and Las Cristinas properties owned by Venezuelan Goldfields (TSE) and Placer Dome respectively. Nueva Alaska is six miles north of Lote Delta and borders Carson’s existing Bloque A concession.
Airborne and ground geophysics, as well as geochemical work, has outlined anomalies on both properties, and many of these correlate well with pits and workings developed by small-scale miners over the years.
Carson will spend US$1.5 million on the two concession in the next 24 months. It intends to perform geophysics and geochemistry to outline trench and drill targets.
Payment for the concessions includes: US$200,000 on or before closing; $3 million on closing; $2 million 30 months later; and 2.5 million shares of Carson plus 2 million 3-year warrants exercisable at $4 per share; as well as reserve payments of US$5 per oz. of contained gold reserves over one million oz. and under 1.5 million oz. and US$8 per oz. on reserves over 1.5 million oz.
Vengold can earn a half interest in the two projects by reimbursing Carson for all acquisition, development and feasibility costs after the completion of a feasibility study. In addition, Vengold would cover Carson’s cash payments of $5 million by issuing the vendor 300,000 shares on closing and 200,000 shares by Mar. 31, 1995.
The companies expect to close the agreement by the end of January.
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