LAST BUT NOT LEAST — Arauco control changes

An agreement-in-principle has enabled privately owned Santa Elina Gold to gain control of Arauco Resources (VSE).

Santa Elina, a medium-size gold producer with holdings in Brazil and Bolivia, reached an agreement with the five largest shareholders of Arauco to acquire their 3.4 million shares in the company.

Santa Elina will also acquire back-in rights on Arauco’s properties held by Teck (TSE).

Under the agreement, Santa Elina will subscribe for two million units of Arauco for a total of $2.4 million. Each unit includes a share and a warrant exercisable at $1.20 in the first year and $1.50 in the second year. On completion of the transactions and assuming the exercise of the warrants, Santa Elina will hold a 70% interest in Arauco on a fully diluted basis. The five controlling shareholders of Arauco will be issued securities in Santa Elina which, in turn, expects to complete a public offering in Canada.