Energold acquires Minera Hispaniola from
Battle Mountain
Energold Mining Ltd
EGD
Shares issued 14,340,394
1998-10-29 close $0.5
Friday Oct 30 1998
Also Battle Mountain Canada Ltd (BMC)
Mr. H. Walter Sellmer reports
The company has completed the purchase of all of the shares, the nsr royalties, the
shareholder loans and assets of Minera Hispaniola, S.A. from Battle Mountain
(Dominican Republic), a subsidiary of Battle Mountain Gold and Canyon
Resources Corporation.
The terms of the purchase, which were substantially reduced from those of the
original agreement signed in April 1995, include a purchase price of $100,000
(U.S.) (down from $500,000 (U.S.)); preproduction payments of $250,000
(U.S.) in each of the first and second years of commercial production from the
first property Energold places into production (extended from a single payment of
$500,000 (U.S.)) and 1 per cent nsr royalties, to a maximum total amount of
either $1 or $2-million (U.S.) (down from a maximum of 3 per cent nsr,
uncapped) on certain groups of properties, payable to Battle Mountain Gold (60
per cent) and Canyon Resources Corporation (40 per cent).
Minera Hispaniola, S.A., now wholly owned by Energold, is the holder of the
Centenario Exploration concession application, as well as the Majagual, Lechoso,
Los Pedregones and San Antonio I exploration concessions. These concessions
total 19,900 hectares and cover epithermal gold, porphyry copper-gold and
volcanogenic massive sulphide exploration targets in the Dominican Republic.
Since 1995, Energold has spent in excess of $3-million (U.S.) on exploration in
the Dominican Republic on behalf of itself and several other companies with which
it holds back-in or earn-in rights to a strategic land position in the country,
including, among others, the Longyear, Baritina, El Brujo and Rey Midas gold
targets.
The company has in excess of $2-million in its treasury, no debt and is well
positioned to pursue the continuing exploration of its strategic portfolio of
properties in conjunction with its joint venture partners, or on its own. Energold
continues, as well, to seek new opportunities elsewhere in Latin America.
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