Junior companies VenCan Gold (ME) and Chesbar Resources (ME) have signed an agreement relating to their gold exploration joint venture in Venezuela’s Bolivar state.
The agreement, which is still subject to regulatory approval, provides Chesbar with an option to acquire VenCan’s 50% interest in the Venezuelan joint venture. The option was granted by VenCan in consideration of the cancellation by Chesbar of its inter-company account of about $160,000. Chesbar can exercise the option to acquire 100% of the joint-venture interests by Dec. 31, 1995, by making cash payments of about $850,000 to VenCan or, alternatively, paying VenCan about $100,000 and issuing 1.5 million of its shares (plus warrants).
The joint venture’s work to date has focused on La Salle concession and adjoining properties in the Anacoco area, and on Los Purgos concession in the Bochinche area.
Both areas are reported to have a history of small-scale production by local surface miners.
Chesbar says this work has yielded encouraging results, and it intends to continue to explore these areas “as aggressively as possible.” In mid-1994, Chesbar and VenCan had announced plans to combine their property interests in Venezuela. The recent agreement provides for a different course of events and the two companies no longer plan to amalgamate.
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