Bitech Res. bids to expand Newfoundland land position

Toronto-based Bitech is offering to acquire all the common shares of Tashogan Minerals, a private Ontario company which controls 132 claims to the northeast of Bitech’s Nugget Pond property.

Tashogan’s Tilt Cove claims are known to contain the northeasterly extension of the 15 km Nugget Pond horizon which Bitech is probing via some 60,000 ft of diamond drilling. Having already outlined 226,860 tonnes of grade 0.40 oz per ton in two separate parallel zones at Nugget pond, Bitech is in the midst of forming a joint venture with Equity Silver Mines (TSE).

The Tilt Cove claims, which contain a former high grade copper mine, was the subject of a recent reconnaissance geochemical exploration program. With several anomalies to examine, Bitech is currently doing follow-up geochemistry, line cutting and trenching.

Asked if the property was strategically vital to his company’s exploration plans, Bitech President Jim Wade replied, “We view it as important enough take it over.” The Tashogan offer comes just three months after Bitech agreed to acquire a 50% stake in Tilt Cove in return for making option payments of $5,000 and $500,000 in work commitments over three years.

The latest offer is conditional on Bitech being able to acquire at least 51% of Tashogan’s 4.2 million outstanding common shares. Vancouver-based Halcyon Resources (VSE), a company controlled by promoter Murray Pezim, has the right to acquire an additional 500,000 Tashogan shares at 35 cents per share.

Bitech has also agreed to issue one unit to Tashogan shareholders for each five shares of Tashogan tendered. Each unit consists of one Bitech common share and one Bitech common share purchase warrant.

Wade said he likes a couple of other properties in the Tashogan portfolio. They include the 253- claim Kowkash property 40 miles north of Beardmore, Ont.

It contains a geological reserve inventory of 200,000 tons, grading 0.210 oz gold per ton. Based on a previous agreement, Halcyon can earn 50% of Tashogan’s stake in the property.

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