GOLD MINING - Gold Fields selling Choco 10 to Canadian
Monday, October 22, 2007 in Industry News
VENEZUELA - RUSORO MINING of Vancouver has agreed to buy the Venezuelan assets of GOLD FIELDS for Cdn$210 million. The deal includes the Choco 10 gold mine, which has been hampered by water shortages, equipment failures, and labour problems.
The Rusoro deal involves creation of a subsidiary, Rusoro Mining BVI, which will sell 37.5 million subscription receipts at a price of $2.40 each. There will then be a merger of Rusoro, Rusoro BVI, and GF MergeCo (a Gold fields subsidiary) to create a company that will hold the Venezuelan assets. Rusoro BVI receipts may then be exchanged for Rusoro BVI shares and warrants that will eventually be exchanged for Rusoro shares and warrants.
The Rusoro deal involves creation of a subsidiary, Rusoro Mining BVI, which will sell 37.5 million subscription receipts at a price of $2.40 each. There will then be a merger of Rusoro, Rusoro BVI, and GF MergeCo (a Gold fields subsidiary) to create a company that will hold the Venezuelan assets. Rusoro BVI receipts may then be exchanged for Rusoro BVI shares and warrants that will eventually be exchanged for Rusoro shares and warrants.
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