Corona buys 7% of Bondf, has option on another 20%

Australia-based Bond, with interests in 11 gold mines world-wide, including the Golden Patricia mine near Pickle Lake in northern Ontario and the large El Indio mine in Chile, is projecting total gold production this year in excess of 500,000 oz.

Corona announced the purchase, on the New York Stock Exchange, of about 3.97 million shares of Bond for $7.25(US) each, and 793,651 warrants for $1 each.

The deal gives Corona the right to cause Bell Resources, an associated company within the Bond group, to repurchase the shares and warrants at Corona’s cost for a period of 90 days.

Corona also has the option to buy a further 20% of Bond, from Bond’s controlling shareholder, Dallhold Investments, for a period of 60 days at $8.25 per share.

Corona Vice-chairman Timothy Hoare will represent his company on Bond’s board of directors.

In 1988, Corona’s gold production amounted to 301,101 oz. That total is exclusive of output from the large Page-Williams mine at Hemlo, the legal ownership of which remains in dispute.

The Corona announcement comes at a time when Dallhold, a holding company with international interests and controlled by Australian businessman Alan Bond, appears to be in some financial trouble. Major Dallhold assets have been put up for sale as a means of helping to reduce the group’s borrowings.

Alan Bond was recently publicly reprimanded by two Australian regulatory agencies, one dealing with his broadcasting interests and the other involving the Australian Stock Exchange and his brewery assets.

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