An agreement with two companies will allow TVX Gold (TSE) to acquire controlling interest in a Czech company which owns the exploration rights to the Kasperske Hory gold property in the Czech Republic.
Toronto-based TVX plans to acquire a 90.5% interest in the company Bohemia Dulni. It will acquire a 40% interest from Royalstar Resources (VSE) and from Paramount Ventures and Finance (VSE) by paying each company US$1 million and issuing each company 600,000 shares of TVX. And it will purchase an additional 10.5% interest from Royalstar for C$1.25 million. TVX must commence a US$3-million work program on the property, which should be completed within two years. Should TVX then reach the production-decision stage, it must issue an additional 400,000 shares to each of Royalstar and Paramount. Should TVX decide against production, the two companies would have the option of re-acquiring the shares of Bohemia owned by TVX. TVX has also agreed to take down a private placement in Royalstar of 1 million shares at $1.70 per share.
The transactions are subject to regulatory approval and to TVX conducting due diligence.
Kasperske Hory is 160 km southwest of Prague and about 20 km from the German and Austrian borders. The main exploration target has been drilled previously and hosts more than 1,200 metres of underground workings. Estimated reserves stand at 1 million tonnes grading 8 grams gold per tonne.
Meanwhile, TVX has received a listing on the New York Stock Exchange and has been de-listed from the National Association of Securities Dealers Automated Quotation (NASDAQ).
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