Rusoro Claims Top Spot as Venezuela's No. 1 Gold Producer

Just 10 days after securing an $80 million loan from Peter Hambro and leading investment banks, Rusoro has announced plans to purchase Hecla’s Venezuelan assets in Bolivar State to become the country’s largest gold producer. The deal marks another milestone for the company’s regional consolidation strategy. Rusoro Mining [TSX-V:RML] said late Thursday it has signed a deal to buy Hecla Mining’s [NYSE:HL] Isidora mining leases, which includes the producing Isidora mine and the La Camorra mill facility in southeastern Venezuela, in a deal worth $25 million in cash and stock. Rusoro will pay $20 million in cash and 4.3 million shares worth about $5 million. At the same time, Rusoro also announced the release of the second tranche of an $80 million financing secured last week in the amount of $52 million. On June 10, Peter Hambro [LSE:POG] led a group of investors composed of itself, BlackRock Investment Management, GLG Partners LP, Lansdowne Partners Ltd. and Endeavour Mining Capital Corp. in lending Rusoro funds for “regional consolidation opportunities.” “The Hecla-Venezuela acquisition confirms our exceptional growth profile and allows us to target an annual production rate of 220,000 ounces per year by the end of 2008,” said Rusoro CEO Andre Agapov in a statement.