ValGold Resources Ltd. is using cash and stock to gain access to a prospective gold producing areas of western Ukraine.

The Vancouver-based company will pay $10 million in cash and issue 3.5 million shares for a 75 percent stake in Klinservis-Center Ltd., private Ukrainian company. The plan is subject to regulatory approval.

Klinservis is to hold a 25-year mining license over the now-inactive Muzhievo gold-silver mine and the surrounding mineral fields of the Beregovo Mining District.

The mining license will include the Muzhievo mine, and the Beregovo and Kvasovo projects.

We have been monitoring gold and silver opportunities in the Carpathian region for some time and are pleased to have now negotiated an agreement with our Ukrainian partners, ValGold CEO Stephen Wilkinson.

ValGold holds interests in Canada and Venezuela.