Hecla has been taken over by CVG-Minerven and, according to local officials in El Callao, it is expected that the mining rights will be re-assigned to the Russian Agapov's Russoro.

Mining union representatives are, however, somewhat hesitant about the transition and are demanding guarantees from CVG-Minerven president Luis Herrera and Mibam's Sanz before signing-off on any deal.

While Labor Ministry officials are conducting a comprehensive audit and review of conditions at Hecla, begun Thursday, the company continues to maintain that it has not violated any human rights and has always acted within the law. Ministry officials will also review conditions at Hecla's La Camorra mine where there is a similar dispute over unpaid wages and benefits under the Labour Act.

Correo del Caroni sources at the Basic Industries & Mining Ministry (Mibam) say it is the end of the road in Venezuela for since Hecla has refused to re-engage three employees fired for having filed complaints to Minister Rodolfo Sanz that they had been forced to strip naked.

Subsequently Hecla is considered to have abandoned any claims it may have had to remain in Venezuela and this is also offered as an explanation as to why Sanz has chosen to re-assign the mining rights to the Agapov company rather than go the full hog of state intervention and subsequent transition delays.