Queenstake plans acquisition to expand Latin American holdings

The planned acquisition of a Cayman Island corporation will significantly expand the Latin American holdings of Queenstake Resources (TSE).

The company will acquire the shares of Intercontinental Resources (IR) and its rights to 96 mineral properties in Peru, 12 properties in Chile, and 23 properties in Mexico, covering an aggregate of 174,000 hectares.

In return, Queenstake will issue the shareholders of IR four million common shares, plus 500,000 purchase warrants exercisable at 60 cents each for five years.

IR originally acquired its property interest by evaluating satellite images covering favorable geology for precious and base metal deposits.

James Mancuso and Robert Miller, principals of IR, will assume the role of president and vice-president, respectively, at Queenstake. Gordon Gutrath, current president of Queenstake, will become chairman and director.

A six-month, $1.5-million reconnaissance program is planned on 71 of the Peruvian properties, while 13 properties in Peru, Mexico and Chile will be mapped and sampled.

The company expects to drill test at least six prospects during the first four months of 1996.

Queenstake is well-funded, with about $4 million in working capital, no debt and approximately 20 million shares outstanding.

Queenstake has been active in South America for several years, particularly in Venezuela’s Kilometer 88 gold district.