Rio Algom increases stake in Pan Orvana

The purchase brings Rio Algom’s interest in Pan Orvana to 2.9 million shares, or 32.7% of the company.

Rio Algom also agreed to purchase an additional 336,364 shares by Dec 31, 1989, which would increase its interest to about 35%. The company may elect not to subscribe for these shares provided a planned initial public offering by Pan Orvana raises $1.5 million prior to year-end.

Pan Orvana President Robert Watts does not expect the company to complete a public offering this year because of current market conditions. He did indicate, however, that the company is considering the option of merging with a listed company.

Pan Orvana’s properties include the Cobb Creek property in Nevada, a 60% earn-in from BHP Utah where 3.2 million tons of drill-indicated mineralization grading 0.046 oz gold per ton has been outlined in the McCaul Creek zone.

The Cariboo Gold Quartz project, a 50% earn-in in the Wells- Barkerville district of central British Columbia, hosts probable open pit reserves of 430,000 tons grading 0.114 oz gold.

The company also has the right to earn 100% interest in a gold deposit five miles from Libby, Mont. The property, currently owned by Homestake Mining, has drill-indicated reserves of 11 million tons grading 0.029 oz.

Rio Algom has the right to earn 50% of Pan Orvana’s interest in certain properties by funding them to feasibility.

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