Laguna expands holdings

Laguna Gold (LGC-T) will issue 35 million shares and 4.9 million 3-year share purchase warrants (priced at US4 each) to acquire 2,550 sq. km in Mexico from Monrovia and 6,270 sq. km in Colombia from Raindance. The two holding companies are based in Aruba.

The Mexican package includes nine mining properties and 69 concessions and applications for concessions, whereas the Colombian package includes 28 properties and 148 concessions and applications.

Monrovia and Raindance will receive a combined US$100,000, along with US$565,000 in property-holding costs and 39.9 million warrants priced at US14 each; these would be exercisable only after Laguna reports a reserve of at least 100 million oz. silver.

The acquisition is subject to due diligence by all parties, as well as approval by Laguna’s board and by regulators and shareholders. Also, Laguna is required to secure US$2 million in financing before April 7, 2000.

The new Laguna would have more than 114 million shares outstanding, compared with 35 million at present.

In 1999, Laguna was forced to close the Rio Chiquito gold-silver mine in Costa Rica after it failed to reach production targets.

The company also owns four exploration properties in Panama, comprising 385 sq. km.

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