VSE-listed juniors Royalstar Resources and Paramount Ventures and Finance plan to form a joint venture to explore the Kasperske Hory gold project in the Czech Republic.
The companies announced an agreement with Bohemia Dulni A.S. to acquire jointly an 80% interest in the project, days after Murray Pezim’s Prime Equities International (VSE) announced plans to acquire the same project. “It appears the Czechs were dealing with us both at the same time,” Pezim told The Northern Miner. “They (Royalstar and Paramount) can have it. I’m working on other things now.”
The Kasperske Hory property is in a historic gold mining district about 80 miles southwest of Prague. Work by the Czech government in the 1980s included 54,662 ft. of drilling and 5,066 ft. of underground development. Drill-indicated and inferred reserves are estimated at 10 million tons grading 0.22 oz. gold per ton. Metallurgical testing indicates gold recovery values of between 88% and 91%. Based on preliminary engineering evaluations, the property has the potential to produce about 140,000 oz. gold annually with operating costs of about US$180 per oz.
The acquisition is still subject to regulatory approvals and further due diligence by Paramount and Royalstar. Consideration for the acquisition calls for each company to pay $25,000 to Bohemia Dulni upon acceptance and a further $350,000 upon VSE approval of the formal agreement.
Each of the companies will also issue 500,000 shares to the vendor over nine months. A final payment of $1.25 million will be payable by each company at the start of commercial development.
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