Channel Res. lands W. African gold

Agreements to explore three large gold concessions in Burkina Faso gives Channel Resources (VSE) control of 5,700 sq. km of ground in West Africa.

The company can earn up to a 95% interest in the SOMIFA concession by spending $500,000 on exploration during each of the initial two years of the option and $750,000 during the third year.

Another deal, involving Generale de Mines et de Carrieres (G.M.C.), allows the company to earn a 90% interest in two concessions by spending $600,000 on exploration during the first year and $900,000 during each of the following two years.

Numerous drill targets have been identified on each of the three concessions despite a limited amount of reconnaissance work.

Channel has arranged a private placement of 3.5 million units at 45 cents each and will provide an aggregate of $1.6 million to fund exploration on the African projects.

Insiders of Channel have agreed to buy 500,000 units of the private placement, with each unit comprising one share and one warrant exercisable at 45 cents each for three years.

Following completion of the private placement, Channel will have about 14.2 million shares outstanding.

The company also has about 1.2 million warrants exercisable at 30 cents which expire Feb. 10, 1994.