Laguna Gold, a wholly owned subsidiary of Mallon Resources (MLRC-Q), has raised to 100% its interest in the Rio Chiquito gold property in north-central Costa Rica.
The acquisition is the result of a merger with Red Rock Ventures, which held a 10% interest in the property. Shareholders of Red Rock received an aggregate of 2 million Laguna shares (representing 10% equity interest in Laguna) and US$230,000 in convertible promissory notes.
George Mallon, chairman of Mallon Resources, said: “This Red Rock merger, Laguna’s recent financing [US$5 million from a special warrants offer], and Laguna’s planned Toronto Stock Exchange listing are three key steps in our long-range plan to separate Laguna from Mallon.”
The project area comprises 19 concessions totalling 277 sq. km in the Fortuna-Arenal gold district. The Rio Chiquito deposit contains proven and probable reserves of 3.6 million tonnes grading 10.9 grams silver and 1.5 grams gold per tonne.
The reserve estimate takes into account first-phase drilling through December of last year, and is part of a prefeasibility study that should be completed soon. The company conducted additional drilling this year.
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