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VENEZUELAN GOLDFIELDS TO ACQUIRE ORO UNO CONCESSION

 VANCOUVER, British Columbia, April 23 /PRNewswire/ -- Venezuelan Goldfields Ltd. (Vancouver: VZG) ("Vengold") announces that it has entered into an agreement with various parties to acquire 100 percent of the Oro Uno concession in the Kilometer 88 District of Bolivar State, Venezuela, together with the existing mine, plant and related facilities located at the site. The aggregate consideration payable to these various parties is approximately U.S. $15 million, the issuance of 3,000,000 Vengold common shares (which will be subject to certain contractual resale restrictions) and the assumption of loans of up to approximately U.S. $8.4 million which were incurred for the Oro Uno mine, plant and related facilities. Vengold will satisfy up to U.S. $2.3 million of these loans by the issue of Vengold common shares at CDN $12.375 per share.
 In order to effect the agreement, Vengold will also acquire all of the litigation and related rights to the Oro Uno concession, currently owned by Ivanhoe Capital Corp. ("Ivanhoe") in consideration for reimbursement of Ivanhoe's direct cost of U.S. $3.5 million and the reimbursement of related expenses incurred by Ivanhoe. Vengold will also assume certain future obligations of U.S. $3 million, payable by Ivanhoe to the former owners of the Oro Uno concession, which obligation Vengold expects to be able to satisfy by the issuance of shares of Vengold.
 Subject to regulatory approval and the completion of due diligence by Vengold, the closing of these transactions will occur contemporaneously. Closing, which is expected to occur by May 31, 1993, will also bring to an end all outstanding litigation related to the Oro Uno concession.
 The Oro Uno concession is adjacent to the Las Cristinas concession. Vengold intends to accelerate the exploration and development of the Oro Uno Property.
 In conjunction with this transaction, the company will be raising additional equity capital, the terms of which proposed financing are currently being negotiated with a syndicate of Canadian Investment Dealers.
 The common shares of Venezuelan Goldfields Ltd. trade on the Vancouver Stock Exchange (symbol: VZG).
 -0- 4/23/93
 /CONTACT: Louise Read of Venezuelan Goldfields, 604-688-7166/
 (VZG)


CO: Venezuelan Goldfields Ltd.; Ivanhoe Capital Corp. ST: British Columbia IN: MNG SU: TNM

JB-MS -- LA020 -- 0131 04/23/93 13:59 EDT
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Publication:PR Newswire
Date:Apr 23, 1993
Words:379
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