Consolidated Magna Ventures
Consolidated Magna (CMV VSE) has announced that an agreement has been
reached on their Koala project in Mexico.
Under an agreement with Novagold Resources (NRI TSE), Magna has sold a 20%
interest (out of 95%) in the Koala I claims to Novagold for $100,000 cdn.
In addition, Novagold can earn a 51% interest in the Koala II & III claims,
and an additional 25.9% interest in the Koala I claims, by spending $3
million U.S. in exploration, issuing 100,000 units (one share and one
warrant exercisable at $1.25 for two years) in Novagold to Magna, and
introducing private placees to Magna who will raise a minimum of $150,000
cdn for working capital purposes.
Novagold is an eastern Canada based exploration company which underwent a
rollback in December '97. The company is headed by President Rick Van
Nieuwenhuyse, the prior VP Exploration for Placer Dome in Africa/Eurasia.
This is an extremely positive move for Consolidated Magna for it's ability
to achieve three objectives:
- keep the company solvent
- maintain a large percentage in the Koala while getting work done
- finalize studies on the El Rosario magnetite deposit ($100,000 cdn payment)
As an added bonus, the company maintains the option of joint-venturing the
Reyna de Oro project to another party, or waiting on a share price
improvement to raise additional funding.
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