Amadeusz Juskowiak

Consolidated tvx to buy brazil gold mine stakes

Consolidated TVX Mining Corp said it agreed to issue 78 mln treasury shares to acquire interests in three gold mining companies in Brazil and an option to increase the companys interest in a platinum property

The company said the transactions will bring immediate production and earnings to Consolidated TVX enhance its precious metal potential and is expected to improve cash flow and earnings on a per share basis The company did not give specific figures

Consolidated TVX said it will acquire 29 pct of CMP a public gold mining company in which TVX already holds a 15 pct interest making TVX the largest single shareholder

The company also agreed to acquire a 19 pct stake in Novo Astro a private company and a 16 pct interest in Teles Pires Mining increasing the TVXs ownership to 51 pct

In addition Consolidated TVX said it will acquire the right to add a 10 pct interest to a platinum property in which it already owns a 294 pct stake

CMP earned 11 mln Canadian dlrs in 1986 and expects to produce 42000 ounces of gold in 1987 at a cost of 160 US dlrs an ounce Consolidated TVX said

Novo Astro operates Brazils richest gold mine located in Amapa State with an average grade of 08 ounces of gold a ton in a hardrock quartz vein Consolidated TVX said Mining of eluvial surface material produced 25000 ounces in 1986 and is expected to produce 60000 ounces in 1987

It also said Teles Pires Mining controls rights to a 350 kilometer section of the Teles Pires River where one dredge is expected to produce 10000 ounces of gold in 1987

Reuter