LAG grabs a larger stake in Ecuadorean gold company

By purchasing an additional 10.1% of Compania Minera Zamora (Cominzasa), Latin American Gold (CDN) has become majority owner in the Ecuadorean gold company, with a 50.1% equity interest.

South American Gold Investors acquired two-fifths of LAG’s previous 50% direct interest in the Las Banderas gold property in Ecuador, which is currently being explored by Cominzasa. In return, LAG’s US$30-million debenture held by SAGI (the largest investor in LAG) was cancelled.

“The cancellation of this note considerably strengthens LAG’s financial condition,” asserts LAG Chairman Gerard Munera.

Las Banderas is a 5,000-acre gold property adjacent to Cominzasa’s Guayzimi lease, and is believed to be geologically similar. Significant gold mineralization has been discovered at Guayzimi Alto in the first phase of a drill program begun earlier this year. The second phase of drilling began in July, and exploration at Las Banderas got under way in August.