Morgan,
ROYALTY AGREEMENT with REPADRE
---------------------------------------------------------------------------------------Laverton Gold N.L. - News Release
Rawas gold project agreement
Laverton Gold N.L. LAV
Shares issued 103,997,383 Dec 3 close $0.40
Wed 4 Dec 96 News Release
See Repadre Capital Corporation (RPD) News Release
Mr Joseph Conway reports
Repadre, through its wholly owned subsidiary Repadre International Corp,
has acquired a 2% nsr royalty on the properties leased by Laverton Gold
N.L., an Australian company, under their contract of work number 1
agreement with the government of Indonesia for A$2,500,000. The royalty
will reduce to 1% after royalties have been received on 500,000 ounces of
gold. In addition, Repadre has agreed to lend Laverton an additional
A$2,500,000 for 18 months under a secured convertible debenture bearing
interest at 2% per year. The debenture is convertible at Repadre's option
into 4.55 million shares of Laverton. Issuance of the debenture is subject
to formal documentation. Repadre also received an option to purchase a 2%
nsr royalty on Laverton's COW2 and COW3 properties for A$2,500,000.
Laverton's COW1 properties in southern Sumatra and 100% owned by Laverton,
include the Rawas mine, which is now nearing completion, with start-up
scheduled for January 1997. Proven and probable reserves for the project in
April 1996 stood at 415,000 ounces of gold and gold equivalent with
resources approaching one million ounces. Exploration programs carried out
since that time have been successful in augmenting these figures with new
estimates available in the forthcoming year. Laverton's COW2 and COW3
properties exceed 2,000 sq km and surround the COW1 properties.
(c) Copyright 1996 Canjex Publishing Ltd. canada-stockwatch.com
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Repadre is a successful company on the TSE and is currently trading around $8.00. Obviously, they believe they will profit from this deal with Laverton. Laverton only has to give up a piece of their production, and does not have to issue shares for the convertible note if theychoose to repay at only 2%. This stock should break out beyond 60 cents after production announced in January. Couple with the end of tax-loss selling this should be very positive.
Regards,
Dan |
