California-based Brenna Resources (VSE) has signed a joint venture deal to conduct exploration in the Uzbekistan Republic, site of about 30% of the Soviet Union’s gold reserves.
In a joint venture with the Uzbekistan Republic, Brenna will provide financing and technical expertise in a bid to develop the Mardzanbulak and Zarmitan gold mines, while retaining an option to develop other mines as well. Under an agreement Brenna and Uzbekzoloto (the Uzbek Industrial Gold Mining Union) will form a joint stock company to be called Uzbekusa or Uzbek American Gold Mining.
The deal gives Brenna 50% of any future production from the Mardzanbulak project which is reported to host 40 million tons grading 0.05 oz. gold per ton, and the larger Zarmitan project, hosting 400 million tons of 0.1-0.2 oz. The capital investment required to develop a 1.5-million-ton-per-year operation is estimated to be US$5 million and Brenna is planning a public placement in New York to raise the funds.
Brenna says the agreement was reached after several trips to the Soviet Union and three contractors have been recruited to participate along with the California firm. The contractors are U.S. company PRA Group International,
the British Simon-Robertson Group and Triad Trading.
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