Echo Bay ups its stake in Etruscan

Colorado-based Echo Bay Mines (TSE) has acquired 906,043 additional common shares of Etruscan Enterprises (VSE), thereby increasing its equity interest to 19.7% of outstanding shares (22.3% on a fully diluted basis).

Etruscan operates the Koma Bangou gold project in Niger, which it shares with Echo Bay, the state-owned company ONAREM and the Nigerien government itself. Since the discovery of the deposit in 1985, a mineral resource in excess of 800,000 oz. gold has been outlined.

Of the $2.7 million it receives from Echo Bay for its shares, Etruscan has agreed to spend at least $1.7 million on Koma Bangou. Etruscan also issued 906,043 nontransferable warrants to Echo Bay, which expire Aug. 10, 1997.

Within 60 days of Etruscan’s submission of a feasibility study to ONAREM (expected in September, 1996), Echo Bay is entitled to acquire 65.67% of Etruscan’s 67% interest in the project. At that time, ownership of the project would be Echo Bay 44%; Etruscan 23%; ONAREM 23%; and the state of Niger 10%.