Now named Amazon Goldsands Ltd. and based in Reno, Nevada, the company signed an option agreement with Temasek Investments to acquire up to 100% of certain mineral rights in Peru in four 25% steps over 18 months. Total stated payments are $250,000 plus $250,000, $750,000, $1,250,000 and $2,500,000 in cash, plus 2,500,000, 3,500,000, 4,500,000 and 5,500,000 shares; Temasek would get a 2.5% net returns royalty (1.5% if $2,000,000 is paid). This is a change of direction from the Finland projects.
FinMetal Mining Oy amended its October 2006 option with Magnus Minerals: payment and work deadlines were extended for the Rautavaara and Tainiovaara properties, and the company chose not to exercise the second-year option on Petrovaara and Poskijärvi-Kokka, which go back to Magnus at its expense. This trims the four-property Finland option from the December 2006 financing to two properties.
FinMetal Mining signed a new option and joint venture with Magnus Minerals to explore the Enonkoski area in Finland (nickel-copper-platinum group elements). It can earn up to 51% by spending US$10 million on work and making 3 million in option payments over about 4.5 years, and would operate the venture. The company is now based in Vancouver. This is a much smaller, staged arrangement with Magnus after the share-purchase deal was cancelled in April.
Magnus Minerals cancelled the February 2007 Share Purchase Agreement, saying the company could not pay the purchase price due by March 31, 2007. The company says it earned no interest in any Magnus resource property. This ends the Magnus share-purchase deal before it closed; the earlier option on the four Finland projects is not mentioned here.
Now named FinMetal Mining Ltd., the company signed a Share Purchase Agreement with Magnus Minerals Oy to buy 30% of Magnus by March 31, 2007 for EUR 5,967,000 in cash plus 8,000,000 restricted shares valued at US$1.42 each. It also got options to buy a further 21% (EUR 5,005,380 by Dec 31, 2007) and the remaining 49% (EUR 11,997,285 by March 31, 2009). This is a new, larger deal with the same Finnish counterparty from the December 2006 Finland projects; the filing does not say how the cash would be funded.
12 Dec 2006capital raising announcement▲ GoodMajor
Filing under the name Gondwana Energy, Ltd. (same registrant, Commission File No. 000-51203, as First Colombia Gold), the company raised US$2,545,000 by selling 5,090,000 units at $0.50 to 17 foreign investors; each unit is one share plus a warrant to buy another share at $1.00 for 12 months. The company says the money lets its subsidiary FinMetal Mining Oy begin exercising an option to buy 100% of four precious and base-metals projects in Finland, and it plans to rename itself FinMetal Mining Ltd. Existing shareholders are diluted by the 5,090,000 new shares and potentially by the warrants.
What it means for a shareholder
5.1m new shares at US$0.500 to raise about US$2.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
