VENEZUELA - RUSORO MINING of Vancouver has agreed to buy the Venezuelan assets of GOLD FIELDS for Cdn$210 million. The deal includes the Choco 10 gold mine, which has been hampered by water shortages, equipment failures, and labour problems.
The Rusoro deal involves creation of a subsidiary, Rusoro Mining BVI, which will sell 37.5 million subscription receipts at a price of $2.40 each. There will then be a merger of Rusoro, Rusoro BVI, and GF MergeCo (a Gold fields subsidiary) to create a company that will hold the Venezuelan assets. Rusoro BVI receipts may then be exchanged for Rusoro BVI shares and warrants that will eventually be exchanged for Rusoro shares and warrants.
A list of Rusoro's other Venezuelan properties is available at www.Rusoro.com.