News Release: PVM increases Uganda Holdings by 50% - Drilling Underway!
Pacific Vangold Mines Ltd -
Interest in Nhlanhla Limited to be acquired
Pacific Vangold Mines Ltd
PVM
Shares issued 12,563,412
1998-10-16 close $0.21
Monday Oct 19 1998
Mr. Dal Brynelsen reports
Pacific Vangold has entered into separate agreements with each of GHK
Resources and Ketch Trading Co. and certain of its associates (collectively
KTC), whereby it has been granted options to acquire each of GHK's and KTC's
16.65 per cent equity interests in Nhlanhla Limited (NHL), a private Ugandan
holding company, in which Pacific Vangold holds the remaining 66.67 per cent
equity interest. NHL owns an undivided 30 per cent interest in another private
Ugandan company, Ruwenzori Exploration (Uganda) Limited, which is the
registered owner of seven exclusive prospecting licences and one special exclusive
prospecting licence allowing it to explore for a wide range of minerals covering an
area of 17,364 square kilometres in the Republic of Uganda. The remaining 70
per cent equity interest in Ruwenzori is owned by Avmin Africa Holdings B.V., a
subsidiary of Avmin Limited of Johannesburg, South Africa.
The company has agreed to pay each of GHK and KTC $5,000 and issue each
of GHK and KTC 200,000 shares within five days of receiving VSE acceptance
to the agreements. Furthermore, in order to exercise the options, the company
must make the following cash payments and share issuances to each of GHK and
KTC:
i)
$20,000 and 200,000 shares on a discovery of merit, such shares and cash
payment to be subject to the filing and receipt of VSE approval of an
acceptable engineering report describing the discovery of merit;
ii)
$20,000 and 200,000 shares on the approval of a bankable feasibility study;
and
iii)
200,000 shares within three months after commercial production from any of
the Ugandan properties.
In the event the company exercises the two options described above, it will own
all of the issued shares of NHL and therefore an indirect 30 per cent interest in
Ruwenzori.
Ruwenzori is conducting a drill program on special exclusive prospecting licence
4150 and the company will announce the results as they become available from
Avmin.
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