Wednesday, 18th June 2008 (461 views)

BacTech Mining Corporation has acquired Yamana Gold's 33 per cent stake in two gold deposits in the Fergusson Island gold project.

The gold project in Papua New Guinea will be the first undertaken by BacTech.

In compensation for the purchase, BacTech will give Yamana 15 million common share and Yamana will own 19.97 per cent of BacTech once the deal has been completed.

Currently 67 per cent of the ownership of the two projects belongs to Gold Aura. A new venture will be created between BacTech and Gold Aura to replace the Yamana one.

The Gold Aura agreement will see BacTech give the company C$1 million.

This will increase BacTech's stake to 43 per cent, which will be further increased to 50 per cent over the next 24 months, according to the release.

Since 1996, over $15 million has been spent on the Gameta and Wapolu properties by Yamana and Gold Aura.

Ross Orr, president and chief executive officer of BacTech, said: "Our goal this year is to ultimately build an inventory of in excess of 1 million ounces of gold through earn-in or by acquisition."

 

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