Vancouver-based East West Resource (EWR-V) has signed a letter of intent to acquire interests in three concessions in Guyana and a gold deposit in Kyrghyzstan.
The vendor is Nelson Bunker Hunt of Dallas, Tex.
In exchange for 22 million shares, East West would acquire interests ranging from 25% to 50% in the three Guyana properties and a 70% stake in the Unkertash gold deposit. As a result, Mr. Hunt would become a majority shareholder, with 51% of East West’s issued capital. Along with two of his nominees, he would also become a director of the company. Upon receiving shareholder and regulatory approval for the deal, East West will proceed with a private placement of $4-6.5 million.
Each concession in Guyana covers about 20 sq. km of gold geochemical anomalies and pits dug by local miners. Drill results from one concession returned high-grade gold values over encouraging widths.
The Unkertash deposit in Kyrghyzstan has proven and probable reserves of 20.6 million tons grading 0.07 oz. gold. An exploration drift is being driven to investigate a higher grade zone.