Red Eagle Mining (RD.V) has announced it has received 17.55 million new shares of CB Gold (CBJ.V) to compensate Red Eagle for making a share-based payment as part of the property obligations at CB’s main project, the Vetas gold project in Colombia. As expected, Red Eagle is gradually increasing its stake in CB Gold and is now actually calling all the shots. We still think an amicable solution with Batero Gold (BAT.V) which owns a large minority stake, is possible.
Red Eagle is continuing to build its Santa Rosa mine in Colombia and according to the most recent updates, the construction activities are going as planned. Everything remains pretty much on schedule to allow Red Eagle to make the transition from a developer to a gold producer by the third quarter of this year. If the Colombian Peso remains this weak, we’re pretty sure Red Eagle might have some positive surprises for the market on the production cost front, as quite a bit of its expenses are in the local currency which has lost a lot of ground versus the US Dollar.Go to Red Eagle’s website
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