KWG backs Cuban project of Joutel

Toronto-listed KWG Resources will buy 8 million units of Joutel Resources (TSE) at 40 cents per unit, for proceeds of $3.2 million.

Each unit in the private placement consists of one subordinate voting share and one half warrant. One whole warrant can be used to buy one additional subordinate voting share at 60 cents per share for 18 months.

Joutel has also agreed to a joint-venture with KWG on 900 sq. km of its 1,562-sq.-km land package in the Camanguey area of Cuba.

In 1995, four gold zones were discovered on Joutel’s property, on one of which was reported a 37.6-metre drill intersection assaying 4.83 grams gold and 2.44 grams silver per tonne. KWG can earn a 70% interest in Joutel’s interest in these lands by spending US$1 million over two years.

Meanwhile, Teck (TSE) is buying 1.7 million shares of Joutel at 29 cents per share, for a total investment of $500,000. Joutel, in turn, has given Teck options to buy 1 million shares at 35 cents per share on or before Feb. 4, 1997, and 1 million shares at 70 cents on or before Feb. 4, 1998.

Teck can earn a half interest in Joutel’s holdings in Cuba by completing a feasibility study and providing mine financing for Joutel’s share of development costs to place deposits into production.