News

April 30, 2008

Carpathian Gold Plans To Accelerate Production Via Its Acquisition In Brazil

By Charles Wyatt

Until it announced the acquisition of a big gold project in Brazil, Carpathian Gold, as its name suggests, had focussed on two projects on the Carpathian Arc in Romania. This diversification was announced in December, and, although it is only now being completed, a look at a chart of the share price indicates that investors are not overwhelmed by it. One of the reasons may be that they are used to the exploration in Eastern Europe, which is proving quite successful. Another may be that the terms of the deal mean that the vendors of the Brazilian property will end up with around 45 per cent of Carpathian, and investors do not want a change of management.

These vendors include Peter Marrone of Yamana Gold who is an ambitious little man and, as a Canadian friend put it, “not everyone’s flagon of ale.” But he’s probably got enough on his plate at the moment - and the actual mover and shaker behind this deal is Paulo de Barito, an influential Brazilian, knowledgeable about mining. Dino Titaro, Carpathian’s chief executive, has known Paulo for some time, so there should be peace on the board which remains under Dino’s control.

At the moment Dino is...