Bitech awaits judgement on Tashogan acquisition

Tashogen holds the 132-claim Tilt Cove property in Newfoundland’s Betts Cove region which is thought to have strategic implications for Bitech’s Nugget Pond gold project nearby.

After releasing some spectacular drill results at Nugget Pond last year, Bitech has embarked on a $24.5 million joint venture with Placer Dome Inc.’s (TSE) 60%- owned affiliate Equity Silver Mines (TSE).

Bitech recently agreed to acquire a 50% stake in the Tilt Cove claims which contain a former high grade copper mine.

So far, Tashogan has tendered 85% of its 4.72 million issued shares to Bitech. But completion of the transaction is subject to a fairness study by Lowewen, Ondaatje, McCutcheon of Toronto and approval by regulatory bodies.

Under the terms of the offer, Bitech will issue one Bitech unit for each five common shares of Tashogan. A unit consists of one common share of Bitech plus one common share purchase warrant.

Two warrants plus $3 entitles the holder to purchase one common share of Bitech at any time during the 12 months after the transaction is completed.

In addition to its Newfoundland property, Tashogan owns 253 claims and leases near Beardmore, Ont. Called the Kowkash property, the claims cover 4,000 hectares and contain about 210,000 tons grading 0.210 oz gold per ton.

Vancouver-based Halcyon Resources (VSE), a company controlled by promoter Murray Pezim, has an option to earn a 50% stake in Tashogan’s interest in the Kowkash property by subscribing for 500,000 Tashogan shares at 35 cents each.

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