The sale of Kennecott’s interest in the North and South Kemess properties is now complete with the payment of $3.5 million by El Condor Resources (VSE).
El Condor now has a 100% interest in the North Kemess property and exclusive rights to earn a 60% interest in the adjacent South Kemess property. The properties are located in north-central British Columbia within 12 km of the access road to the Lawyers gold mine. El Condor has spent about $800,000 of the $1.1 million required to earn the South Kemess interest from St. Philips Resources (VSE).
Funds for the Kennecott purchase were borrowed from Covenant Resources (VSE) which in turn borrowed the money from principals Robert Dickinson, Robert Hunter and Douglas Forster.
El Condor and Covenant expect to ratify a 1-for-1 merger proposal at a shareholders’ meeting scheduled for June 24. Three shareholders of El Condor holding 34% of the outstanding shares and four shareholders of Covenant holding about 51% of that company’s issued shares have agreed to vote in favor of the proposal.
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