TerraGold chief buys Jascan stake

The president of TerraGold Resources (ASE), G.W. Felderhof, has agreed to purchase the majority of Jascan Resources’ (TSE) holdings in TerraGold.

Jascan owns 1.35 million shares, or 71%, of TerraGold.

The agreement allows Felderhof to purchase 946,884 free-trading common shares and 250,000 escrowed common shares of TerraGold. The president, who has agreed to pay Jascan $127,000 on closing, also has the option to purchase an additional 227,282 shares.

Jascan will retain a 7.9% interest in the Toronto-based explorer and has the option to acquire 227,282 shares of TerraGold at 75 cents per share by Feb. 28, 1994.

TerraGold, with several mineral prospects on the East Coast, recently traded at 10 cents.