Friday, 14th March 2008 (1426 views)

Carpathian Gold has finalised a definitive purchase agreement with the joint venture developers of the Riachos dos Machados gold project in Brazil for the purchase of the site, the company has confirmed.

Under the deal, Carpathian will issue 75 million common shares to the members of the joint venture, Zoneplan and Repalla, plus an additional 25 million "special warrants" that will be converted into the same number of common shares once an NI 43-101 compliant report has been completed.

Carpathian said the deal offers it a number of benefits, such as the addition of a "strong" exploration and development site that has previous produced gold - a high-grade open pit mine was previously in operation at the site between 1989 and 1997.

This also means that mining infrastructure is already place, including buildings, roads, power supply and water access.

Past estimates have put gold resources at Riachos dos Machados at 3.77 million tonnes grading at 4.61 g/t gold.

Carpathian Gold's other operations include properties in Romania and Hungary.

 

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