Pegasus boosts Zapopan interest

The exercise of a put option will result in Pegasus Gold (TSE) owning 60.5% of Australian-based Zapopan.

Ventures Trident Limited Partnership holds a put option requiring Pegasus to buy its Zapopan common shares and rights.

Ventures Trident will receive 1.75 million shares of Pegasus for the Zapopan shares. As part of the agreement, Pegasus will also transfer a US$4.65-million debt owed to it by a subsidiary of MinVen Gold (TSE). Pegasus will report its interest in Zapopan on a fully consolidated basis when the transaction is complete.

Zapopan expects to produce about 90,000 oz. of gold in 1993 from its Tanami mine in the Northern Territory.

Meanwhile, construction at the Mt. Todd project is to begin shortly. It should enter production at the end of 1993 or the beginning of 1994, at an initial rate of 100,000 oz. gold per year.