McBro/Steve
Interesting news item.
McDee
Java Gold offers to acquire Mongolian Goldfields
International Pursuit Corporation IPJ
Shares issued 23,724,672 Feb 27 close $4.60
Fri 28 Feb 97 News Release
See Java Gold Corp (JVAG) News Release
Mr Stephen Dattels of Java Gold reports
Java Gold intends to make an offer to acquire all the issued shares of
Mongolian Goldfields Corp by offering one share of Java for every two
shares of Mongolian. Mongolian is a company with fewer than 50 shareholders
and hence the transaction will be exempt from the obligation to prepare and
deliver a takeover bid circular and from certain other requirements
contained in applicable securities legislation.
The authorized share capital of Java consists of an unlimited number of
shares, of which 17,620,911 shares are issued. The authorized share capital
of Mongolian consists of an unlimited number of shares of which 12,650,001
shares are issued. If all shares of Mongolian are acquired by Java pursuant
to the share exchange offer, Java's share capital will be increased by
approximately 6,325,000 shares (representing approximately 35.9% of the
current issued shares of Java).
To the knowledge of Java, the only holder of securities of Mongolian
beneficially owning, directly or indirectly, greater than 10% of
Mongolian's issued shares is Mr Armand Beaudoin of Jakarta, Indonesia who
owns approximately 31.6%. To the knowledge of Java, the only holders of
securities of Java beneficially owning, directly or indirectly, greater
than 10% of Java's issued shares are Mr Beaudoin, who holds approximately
16.5%, and International Pursuit Corp, which holds approximately 19%.
Mongolian is engaged in the business of exploring for and development of
gold and other precious metals in Mongolia. Mongolian focused its initial
activities on the placer gold business in Mongolia. It imported into
Mongolia a portable alluvial testing facility and entered into final
testing agreements with Mongolian private and state owned companies with
the objective of entering into contract mining contracts with them.
Mongolian, through local subsidiaries, has acquired working interests in
eluvial and alluvial exploitation licences with a total resource in excess
of 800,000 ounces of gold. Mongolian will commence initial mining of these
resources in spring 1997. In addition, Mongolian holds direct and indirect
interests in additional special and strategic hard rock exploration
licences.
Mongolian's exploration licences are in the East Mongolian Gold belt
(Salkhit and Dasbalbar) and the Gobi region (Ikh Bogd, West Gobi and Ikh
Shanki).
Salkhit
Salkhit is reported to have many similarities to the productive Balci gold
deposit (four million oz Au) 200km northeast in Russia. This low
sulphidation epithermal is characterized by veins and stockworks hosted in
early Cretaceous conglomerates in a northeast trending rift zone.
Dasbalbar
The Tsagaan Chuluut gold prospect within the Dasbalbar licence is
characterized by a large area of limonitization and silicification at the
contact with a small diorite porphyry plug. Trenching during a Russian
exploration program is reported to have uncovered wide zones of gold
mineralization over an area of 400m x 200m. A recent evaluation by Java
geologists researching this area revealed additional potential up to 600m
northeast along the contact zone.
Ikh Bogd
Extensive areas of alteration have been identified from Landsat imagery and
during aerial prospecting of the the Ikh Bogd property. The area is
underlain by Mesozoic volcanics intruded by felsic stocks. Several gold
occurrences associated with stockwork veining have been documented in this
area of historic alluvial gold mining.
West Gobi
The exploration target in West Gobi is a gold-antimony quartz stockwork
zone, in a Paleozoic volcanic are setting.
Gurvantes
The Gurvantes property is underlain by a volcanic assemblage with island
are characteristics. Extensive alteration zones, some with epithermal gold
system pathfinder element anomalies are present. Anomalous gold is reported
in association with extensive areas of jasperoidal rhyolite and porous
ruff.
Zavhkan Mandal
Java has also applied for a special and strategic exploration licence in
Mongolia covering property called Zavhkan Mandal. This property in the
Urgamal belt of northwestern Mongolia contains multiple occurrences of gold
and gold/copper. Hydrothermal gold mineralization zones hosted by
volcanogenic/sedimentary sequences and vein/stockwork gold occurrences
hosted in mafic volcanics are reported on the Zavhkan Mandat property.
Metamorphogenic gold occurrences are also reported on the property which is
of importance in relationship to other deposits of this type further west
in the Altaids, such as the Murantau deposit, which is one of the worlds
largest open pit gold mine. Four gold occurrences are documented on the
Zavhkan Mandal property.
Completion of the Java/Mongolian transaction is subject to a number of
conditions including compliance with all applicable regulatory and
corporate requirements and receipt of a fairness opinion from a dealer
confirming the fairness from a financial point of view to the shareholders
of Java. |
