Venezuela: Golden fever on the banks of Orinoco

October 23, 2007
As reported by an influential Venezuelan newspaper «Universal» (21.10.07), a little known Russian businessmen Vladimir Agapov and his son Andrey have become the pretenders to leading roles in the field of gold-mining in Venezuela.

According to the information of Dow Jones agency, the elder of the Agapovs, who is the director of a small company «Russkoe zoloto» (Rusoro Mining Ltd.) last week committed to pay 532 million dollars for the Venezuelan assets to “South Africa Gold Fields”, the fourth largest gold-mining company in the world.

According to the conditions of agreement «Russkoe zoloto» will pay to “South Africa Gold Fields” 150 million dollars in cash, 30 million in bonds (convertible) and 140 million in the company shares after final (this December) formalization of the deal. It will be around 39% of the share capital.

This agreement will give to the control of the Agapovs the gold-field Choco10, one of the most perspective ones in Venezuela. This procurement makes «Russkoe zoloto» (Rusoro Mining Ltd.) in one line with North American, Canadian and Chinese companies working in the Venezuelan Guayana – region that is rich in gold mines.

This deal of the Russian company is the most celebrated one in recent times. One should remember that it was made at the time when foreign gold-mining companies in Venezuela express certain concern in view of the expected reforms of the laws on mining of resources (Ley de minas).

“Rusoro” as far as we know, possesses four projects in Venezuela in gold-mining, the exposed reserves of which come around 1 million ounces of gold, and estimated ones – 3 million ounces.