Canaustra Gold acquires China First shares

Canaustra Gold (VSE) has agreed to acquire 1.2 million shares of China First Capital (VSE) and will receive 600,000 share warrants exercisable for one year into common shares of China First at 80 per share. On completion of the placement, Canaustra will own approximately 44% of the issued capital of China First.

China First has as its main investment, a 44% interest in Jerome Gold Mines. Jerome is a 50% participant in a joint venture with the Muscocho group of companies, on the Jerome property, a former gold producer located 100 miles northwest of Sudbury, Ont.