Toronto-listed Northgate Exploration has bought a US$3.5-million, 8% convertible note of American Resource (NASDAQ).
The note is convertible into common shares of American or a 3.5% net smelter return royalty on the San Gregorio gold project in northern Uruguay. A bankable feasibility study is under way on San Gregorio and production should begin in 1995. The deposit has a geological resource of 520,000 oz. gold and remains open to the west and at depth.
Should the conversion not take place, the note will be repayable Dec. 31, 1996.
Be the first to comment on "NEWS ROUNDUP — Northgate invests in convertible note"