ABV Gold announced this afternoon that it has acquired a 70% interest in a producing gold mine in Russia. The mining claim contains 33,995 square Km, and gives the company greater potential on the exploration front.
The President of ABV Gold, Daniel Ryan, stated, “This acquisition will be key in creating value for ABV Gold, Inc. shareholders. The fact that this project is in production is immediately beneficial to our shareholders. We acquired the project in a manner that would minimize dilution and maximize value. It is our intention to make this project into a multimillion dollar producer. The reports and studies we have in hand give us confidence that we are getting into a great situation at a very modest price.”
He concluded, “In order to close the transaction we have agreed to issue 1,500,000 preferred A shares of ABV Gold, Inc. to Narrow Galaxy Inc. These shares have a par value of $1.00 USD and carry a rate of interest of 10%. The interest is only payable beginning January 1st, 2008. It is our expectation to begin retiring these shares with cash flow from production in Q2 of 2008. The mine in question is open pit and has a been in production since 2003. We intend to report more comprehensive details on the property later this week.”
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