From the Wires
Threegold Intends to Acquire 19.9% Interest in Golden Eagle Peru
By: Marketwired .
Jan. 9, 2013 10:07 AM
VAL-D'OR, QUEBEC -- (Marketwire) -- 01/09/13 -- Threegold Resources Inc (TSX VENTURE:THG) ("Threegold" or the "Company") is pleased to announce that it intends to enter into an agreement in order to acquire 19.9% of the shares of Golden Eagle Peru S.A., Lima in Peru ("Golden Eagle") with the option to acquire up to 100% of the remaining outstanding shares.
Threegold will acquire 19.9% of the Golden Eagle shares in consideration of twenty (20) million shares of the Company, to be issued in two tranches, at a price of CAD$0.05, a work commitment of US$400,000 over the next 6 months, and an upfront payment of US$50,000. A first tranche of five (5) million shares of the Company will be issued upon closing of the transaction and, upon the work commitment being completed. Threegold shall issue Golden Eagle the remaining fifteen (15) million shares having a total value of US$750,000.
To earn the balance of the 80.1% of the Golden Eagle shares, Threegold shall issue, within eighteen (18) months from the closing of the transaction, up to US$ four (4) million worth of the Company's shares at a 25% discount to the current market at the time.
Victor Goncalves, President and CEO of Threegold Resources comments: "We are extremely pleased to work toward the acquisition of an initial interest in Golden Eagle Peru as the Buen Futuro property holds a vast potential and given its advanced stage, can be brought to a development stage much more easily. Threegold plans on hosting an investor conference call on Thursday January 24th at 15:00 hours Eastern Time to provide a more thorough company update".
Golden Eagle is a private company legally holding mining titles of a premium land package located in the Guarayos Province, in northeastern Bolivia at 280 km north of Santa Cruz de la Sierra and at approximately 18 kilometers east of the Community of Ascension de Guarayos. Golden Eagle is engaged in the development of existing gold and copper deposits in the lower Proterozoic Guarayos Greenstone Belt within Bolivia's Precambrian shield. The total land package consists of 17,300 hectares in notably favorable terrain, infrastructure and labor conditions, at the heart of which is the Buen Futuro Property which is 1,000 hectares in size.
The Buen Futuro project consists of near surface gold mineralization and deeper, mineralized volcanogenic massive sulphides ("VMS") systems containing gold and copper. The project has a historical resource of 170,000 troy ounces of gold (or 4,360,000 tonnes grading 1.23 g/t Au with a 0.2 g/t cut-off) contained within the first 40 meters from surface of laterite, saprolite and saprock (Oxide Gold Zone). An immediately underlying and 45 meter-thick Supergene Copper Zone contains additional historical resource of 267,000,000 pounds of copper (or 6,537,000 tonnes grading 1.85% Cu with a 0.2% cut-off). Both oxide gold and supergene copper ore zones are reported to be extractable by open pit-mining operation. No sufficient work has been performed to estimate the underlying primary ore zone.
The resources reported here are provided as historical data based upon an extensive amount of work that has been done on the property to date, including 14,000 meters of combined diamond drilling, reverse circulation drilling, and auger drilling. The resource estimates are presented in a technical report presented to Golden Eagle in September 2011 by Michael H. Biste, Ph.D and Consulting Geologist. The report was originally prepared strictly in accordance with the Securities Act Industry Guide 7 ("Industry Guide 7") of the United States Securities and Exchange Commission ("U.S. SEC") and with the guidance of the "Society for Mining, Metallurgy and Exploration, Inc.'s Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves" dated March 1, 1999 ("SME Guide for Reporting"). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and the issuer is not treating the historical estimate as current mineral resources or mineral reserves. The Company will not be relying on the data until they have been verified. In addition, this transaction is subject to TSX approval and further due diligence.
The strength of the Bolivian mining industry, coupled with its progressive business mentality allow for a mining scene filled with opportunity. The thriving Bolivian mining industry can be attributed to a strong mining culture and inexpensive operating costs for mining companies as well as mining experienced federal and local governments. Hundreds of years of mining and exploration in Bolivia provide a skilled workforce in mineral mining. Beyond the traditional mining jurisdictions in the Western Bolivian Highlands as part of the Central Andes hosting most of the known significant metalliferous lode deposits, the Eastern Bolivian Lowlands underlined by the highly underexplored Precambrian Shield and the Chaco-Beni Plains have great undiscovered mineral resource potential and have seen a considerable increase in foreign investment for mineral exploration. The Eastern Lowlands offer an abundance of water, a pre-existing infrastructure as well as a local and skilled workforce.
Alain Berclaz, P.Geo., Vice-President Exploration for Threegold Resources and a Qualified Person as defined by National Instrument 43-101, has reviewed the technical content of this press release.
Threegold has established itself as one of the premier exploration companies in Quebec. The Company has a highly qualified technical team with extensive exploration experience, including previous gold discoveries in Quebec, and a management team with financing and public company expertise.
Threegold offers investors a portfolio of high-quality exploration projects focussing on Canadian assets primarily in Quebec; and the potential to create shareholder wealth through discoveries of new, low-cost multi-million ounce gold deposits.
Threegold's strategy is to mitigate shareholder risk through partnerships with the likes of Bowmore Exploration.
You can also visit our website : www.threegold.ca
Except for statements of historical facts, all statements in this news release regarding, without limitation, new project acquisitions, future plans and objectives are forward-looking statement which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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