Greenstone set to merge with Fischer-Watt Gold

Assets of Nevada-based Fischer-Watt Gold (NASDAQ) are being acquired by a wholly owned U.S. subsidiary of Greenstone Resources (TSE).

Proposed is that four issued and outstanding shares of Fischer-Watt be exchanged for one Greenstone share. Upon completion, an additional 3.1 million Greenstone shares will have been issued.

Fischer-Watt explores and develops precious metal properties in Central America. Its key assets are an option to acquire a 51% interest in the San Andres gold prospect in Honduras; property interests in the San Pedro-Guanvacevi silver-gold districts of central Mexico; a 20% interest in the Minas de Oro project in Honduras, being explored by Kennecott; and a 49% interest in Minera Montoro S.A. de C.V.

It is also exploring for precious metals in Baja California, Costa Rica and the southwestern U.S.

A company spokesman said the addition of the Fischer-Watt properties would confirm Greenstone’s commitment to Latin America. He added that the properties in Mexico and Honduras would increase Greenstone’s geographical diversification within Latin America.

Greenstone’s assets include the Oronorte gold-silver mine in Colombia and the Santa Rosa project in Panama. Oronorte, which is hosted within a mesothermal-quartz vien, produced 10,200 oz. gold in 1993. Proven and probable reserves are 122,900 tons grading 0.51 oz. per ton. Santa Rosa is a heap-leach-epithermal gold deposit with proven and probable reserves of 9.9 million tons grading 0.044 oz. gold. Production is scheduled to start in the second quarter of 1994.

The company is exploring several properties throughout Central America.