Concern raised over title claim

After a due diligence review, Venezuelan Goldfields (VSE) has expressed “serious concerns” that its proposed joint venture partner International Kengate Ventures (VSE) may have title problems relating to its acquisition of the Oro Uno gold concession in Venezuela.

Venezuelan Goldfields said it and its Venezuelan legal counsel are of the view that Minex’s claims to ownership of the concession is seriously in question. The concerns were raised when Venezuelan Goldfields learned that an injunction by a Venezuelan court was issued against Minex, a Venezuelan company which was to be indirectly acquired by International Kengate. This injunction, among other things, prevents Minex from selling or disposing of any interest in the concession. A formal legal option is expected shortly, Venezuelan Goldfields said.