Partners Royalstar Resources (VSE) and Paramount Ventures & Finance (VSE) have received approval from a Czech court for their acquisition of an 80% interest in a Czech company which owns the Kasperske Hory gold project.
Under the terms of the agreement, which has also received approval from Canadian regulators, the joint venture paid $500,000 to the Czech government, $200,000 to the previous largest shareholder, and issued 125,000 shares each to the remaining 20% shareholder in the Czech company.
The 20% shareholder retains the interest to feasibility, at which point it may either participate as to 20% or revert to a 3% net smelter return. Based on work by the Czech government in the 1980s, including more than 5,000 ft. of underground workings and 55,000 ft. of diamond drilling, drill-inferred and drill-indicated reserves are estimated at 10.3 million tons grading 0.22 oz. gold per ton.
The joint venture plans to begin underground drilling on the site in November and resume surface drilling in January to upgrade reserves.
Royalstar has completed a $4-million financing at $1 per unit, each unit consisting of one share plus half a warrant. Each whole warrant is exercisable at $1.50 for one year.
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