A preliminary agreement with TVX Gold (TVX-T) will allow Ballad Enterprises (BDC-V) to acquire all property assets held by TVX’s Peruvian subsidiary in the South American country.
TVX Peru holds 35 properties of various sizes totalling 31,100 ha in regions known for their gold production. To date, it has spent US$4.8 million exploring these properties.
Under the terms of the preliminary agreement, Ballad will acquire all the outstanding shares of TVX Peru in return for 300,000 shares at a deemed price of US$7 or the market price on the day of closing.
Ballad also is required to pay $30,000 and spend US$300,000 on exploration within nine months of the acquisition’s acceptance by the Vancouver Stock Exchange.
Once the transaction has been approved by regulators, TVX will retain the right to buy a half interest in any of the existing properties for three years. It can do so by paying an amount equal to Ballad’s expenditures on the date the buy-back right is exercised.
Work to date on the properties has identified exploration targets considered prospective for large-Tonnage, low-grade gold deposits associated with sedimentary-Volcanic sequences. Some properties cover areas worked by artisanal miners, while others contain high-grade gold veins and gold-bearing breccia zones.
Ballad intends to explore and develop these properties further, with initial work programs focusing on properties near Barrick Gold’s Pierina gold deposit.
Ballad’s agreement with TVX does not apply to properties currently held by the junior company in Peru and Brazil.
A spring exploration program is already under way at Ballad’s Arequipa gold project, west of the Peruvian city of the same name, and another program is scheduled to commence on the Anaua properties in northern Brazil.
Ballad is negotiating with potential joint-Venture partners interested in funding ongoing work at the South American properties.
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