Vancouver based Wesgold Minerals has acquired an option to buy up to 51% in the Cordoba Property. The Colombian mining property has received an initial 11% investment from Minatura International LLC for a sum of $4 million. The property has prospects for iron, copper and gold mineral deposits. Wegold specializes in acquiring and exploring early stage gold projects.
Wesgold Minerals will lend Minatura International $2 million secured by the property. The property which is located 200 km north of Medellin has a mining concession contract and many mining claims that cover about 25,790 hectares.
The money will be raised by Wesgold Minerals by way of private placement of debentures convertible to 4,878,050 common shares of the company at the rate of $0.41 per share by May 31, 2012. They will bear interest at the rate of 8% per annum, but are subject to approval of the stock exchange.
Wesgold will see a mutually acceptable person nominated by Minatura serving on their Board of Directors. If they do not elect to acquire the 11% stake in the property the loan would have to be repaid by May 31,2012 with an interest of 8% per annum.
However if they chose to keep the 11% and gain the additional 40% bringing its share up to 51%, Minatura will have a one-time right to sell its remaining 49% interest in the Cordoba Property to Wesgold in consideration for shares in Wesgold. In case Minatura does not wish to sell its stake the venture will be a 51:49 joint venture for developing the mineral property.