Ian McAvity, chairman of Valdez Gold, says a total of 3,999,724 shares of San Paulo Explorations (ASE) have been deposited under the company’s recent offer to purchase two million shares of San Paulo. The offer calls for Valdez to issue one of its shares in exchange for each two shares of San Paulo tendered. The purpose of the offer is to increase Valdez’s investment in San Paulo and satisfy conditions for listing on the Alberta Stock Exchange.
After paying for the two million common shares of San Paulo, Valdez and its parent company MVP Capital (TSE) will together hold about 44.4% of San Paulo’s outstanding shares. MVP owns all the outstanding shares of Valdez Gold which has a 51% stake in the Valdez Creek placer project held 49% by Cambior (TSE).
The companies expect to produce some 80,000 oz. of gold from the placer mine in 1991. Shares of MVP Capital have traded recently at a low of 17 cents within a 1-year range of 16-45 cents.
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