Hansa takes over Rhonda claims

Thoroughly occupied by the Northwest Territories diamond hunt, Calgary-based Rhonda Corporation (RDM-V) has spun off its holdings in the Courageous Lake gold belt, north of Yellowknife, to affiliate Hansa Corporation (HSA-V).

Under the deal, Hansa will issue 8.5 million shares to Rhonda, bringing Rhonda’s holding in the company to about 12.7 million shares. The share issue is valued at $1.7 million.

The shares are subject to a 2-year hold period, during which Rhonda becomes entitled to a further $500,000 payment if the price of gold exceeds US$400 per oz. for 10 consecutive days.

Hansa is issuing 500,000 more shares and 500,000 warrants in a private placement, to raise $110,000. The warrants are exercisable at 25 per share until February 2005. It has also issued options to management and consultants for another 425,000 shares, exercisable at 25.