U.S. REPORT MinVen acquires balance of Stibnite

With the purchase of the other 50% interest in the Stibnite heap leach gold mine from Pegasus Gold Mines (TSE), MinVen Gold (TSE) now controls 100% of the open pit operation.

Pegasus recently acquired the interest from Pioneer Metals (TSE) in return for cancelling debenture-debt of over $15 million.

The deal with MinVen is valued at about $6.5 million and includes a cash payment of $350,000, an interest-free note of $4.5 million payable no later than 18 months after closing, and 2.3 million common shares of MinVen.

In addition, Pegasus will receive warrants to purchase a further 1.75 million shares at $1.50 for a period of three years after closing, increasing to $2 per share for an additional two years.

MinVen expects the acquisition to add in the order of 16,000 oz. gold production for 1991. Production for 1991 from all the company’s operations is projected at more than 100,000 oz.

MinVen recently arranged private placement financing totalling $4.1 million in the form of two unsecured convertible notes. The notes pay 11% and are convertible into common shares of MinVen at 59 cents per share. The conversion feature on the notes is subject to shareholder approval.