A deal to buy the Bolivian company that owns the Capa Circa property in that country will give Da Capo Resources (VSE) full ownership of the gold project.
Until now, Da Capo was able to earn an initial 51% stake in the property by forgiving a US$2.4-million loan to the vendors. It could earn an additional 19% for US$3 million.
Under the new agreement, Da Capo will buy the Bolivian holding company for US$500,000 plus 700,000 Da Capo common shares. Work to date at Capa Circa has outlined a geological resource of 32.2 million tonnes grading 1.17 grams gold per tonne.
Da Capo is studying the feasibility of a large mining and milling operation, combining Capa Circa and the Amayapampa property, situated 10 km to the north.
Da Capo holds an option to purchase a 70% interest in Amayapampa and is negotiating with the owners to acquire it outright. The geological resource at Amayapampa is estimated at 4.1 million tonnes grading 3.3 grams gold.
On closing of the new Capa Circa agreement, Da Capo will have 13.7 million shares outstanding and $2.8 million in working capital.
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