Associated companies Arizona Star Resource (VSE) and Bema Gold (TSE) are teaming up on the Aldebaran gold project in Chile.
Bema plans to acquire the 49% interest in the project held by Minera Anglo American Chile for payments totaling US$4 million in either cash or Bema shares. Of the total, US$300,000 is payable upon signing, with the balance, US$3.7 million, due by March 30, 1996.
Arizona Star holds the remaining 51% and is completing a private placement with Bema. The latter plans to buy up to 4.5 million special warrants at 50 cents each. A warrant will be exchangeable for one unit consisting of one common share and one share purchase warrant, two of which give the holder the right to purchase an additional share at 65 cents.
Bema, which currently owns 1.2 million shares of Arizona Star, plans to finance a portion of the purchase by selling up to 500,000 of its holdings in the company. Arizona Star has 25 million shares outstanding, not including the planned private placement.
The Aldebaran project contains an estimated geological resource of 2.3 million oz. gold. The minable resource in the Cerro Casale deposit was last estimated at 81.1 million tons grading 0.02 oz. gold per ton at a stripping ratio of about 1-to-1.
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