Prime buys U.S. Grant, brings in Bethlehem

Spreading its tentacles into Montana, Prime Capital has acquired control of U.S. Grant Gold Mining and the U.S. Grant property near Virginia City.

Prime and a Vancouver junior, Bethlehem Resources, (VSE) have agreed to participate in a phase one exploration program of the epithermal gold prospect. Bethlehem is headed up by Henry Ewanchuk, past president of Mascot Gold Mines which is now part of Corona Corp.

The work will include sampling, mapping, geophysics, plus surface and underground drilling. Under a broad agreement with Prime, Bethlehem will be able to participate as to 20% in any properties Prime brings to the company.

John Ivany, Prime Capital’s president, notes that the U.S. Grant property has “been a small producer in the past” from a couple of “higher-grade veins.” But he feels there is some potential for a “more diffuse lower-grade orebody,” which will be the subject of a 2-phased program. One of these phases will test the old underground workings and the second phase, the lower-grade open pit potential.

Bethlehem will be acquiring 200,000 shares of U.S. Grant on a private placement basis at $1.11 a share with an option to purchase an additional 200,000 shares at $1.36 per share within a one-year period.