Ivanhoe in control of S.A. Goldfields with private placement

The board of directors of South American Goldfields (TSE) has been strengthened following the recent completion of a private placement with Ivanhoe Capital Corp. .TControl of the junior gold explorer has now passed to Ivanhoe, a private venture capital company controlled by Robert Friedland.

The company’s board has been expanded to nine members as a result of the addition of seven Ivanhoe nominees including Robert Friedland, Dr. Ian Gray, Victor Hollister, Paul Reinhart, David Fennell, John Healey and Michael Mehrtens.

The financing, which totalled $4 million, injects sufficient funds into South American to finance ongoing exploration on the company’s seven gold properties in Guyana.

Field exploration results, including drilling on the properties, are being reviewed and a progress report to shareholders is expected soon. The company also plans to fund exploration on the Mazaruni diamond project in Guyana which was recently optioned from Golden Star Resources (TSE).

The Mazaruni agreement calls for South American to acquire about 14% of Golden Star’s shares by funding the initial $2-million exploration program. As the project expands, a joint venture will be formed with South American as operator. Then a 65% direct interest can be earned if the company spends another $2 million.

South American has also reached an agreement to purchase the property interests in Guyana of its former joint venture partner Homestake International Minerals, a unit of Homestake Mining (NYSE). The deal includes Homestake’s interests in the Akaiwong and Peter’s mine properties, as well as its Georgetown office facilities and field equipment.