Cons. Bonanza buys gold mine in Mozambique

Alberta-listed Consolidated Bonanza Metals (ASE) will buy a gold mine in Mozambique and undergo a name change.

In addition to acquiring the producing Monarch gold mine near Manica, Bonanza will gain control of a subsidiary of Mincor International. The mine, situated on a 1,056-hectare, 20-year mining lease, started up in September, 1993. Total gold production for December, 1993, was 300 oz. and the mine is now producing 10,000 oz. annually.

As consideration, Mincor received 11 million Consolidated Bonanza shares priced at 50 cents each. In addition, the former received warrants to buy another 2 million shares at 80 cents each. The warrants are exercisable until Dec. 15, 1995. Should all the warrants be exercised, Mincor would hold a 74.5% interest in Bonanza.

Consolidated Bonanza will henceforth be known as Mincor Resources, shares of which will trade on the Alberta Exchange.