Cabo to buy stake in Cuban prospect

Cabo Exploration Ventures (CVE-V) intends to buy the balance of the Trinidad concession in Cuba.

The vendor, Panama-based MinAmerica, has agreed to sell its 30% interest in the concession to Cabo in an amendment to the original option agreement.

Cabo had been earning a 35% interest in the property by spending US$2.5 million on exploration over four years and paying MinAmerica US$545,000 over three years.

According to the amended agreement, Cabo must now spend an additional US$1.1 million on the concession by Dec. 31, 2000, and make an additional payment of US$233,571 on Sept. 30, 1999. It will also make a share option payment equivalent to US$94,000 (or 45 cents per share).

MinAmerica will assign its interest to Cabo subject to a 1.5% net smelter return royalty.