Granges buying Zamora stake (September 04, 1995)

A private placement agreement with Zamora Gold (CDN) will shift control of the company to Granges (TSE).

Granges plans to purchase a private placement of 8 million units, consisting of one common share and one warrant, at US60 cents per unit.

Each warrant will give Granges the right to purchase one common share of Zamora at US75 cents until the second anniversary of the closing of the placement.

Zamora plans to use the proceeds from the issue to fund continuing exploration work on the company’s 50%-owned Mina Real concessions in southern Ecuador.

Zamora has identified vein and breccia gold targets, as well as a large porphyry copper-gold target on the property.

Granges will hold an initial 41% interest in Zamora, and the transaction includes a right of first refusal on any proposed financings, mineral property sales, joint ventures or other third-party transactions.