PDX Resources Advised by Detour Gold of the Exercise of Its Option for 100% Interest in the Detour Lake Mine Property
October 30 2008 - 4:16PM
Marketwired
PDX Resources Inc. (TSX: PLG) ("PDX") has been advised by Detour
Gold Corporation ("Detour Gold") that it has exercised its option
for 100% interest in the Detour Lake property in northern Ontario.
PDX has a 42.4% equity interest in Detour Gold (19 million
shares). Detour Gold issued a press release today, the verbatim
text of which follows:
"Detour Gold Exercises its Option for 100% Interest in the
Detour Lake Mine Property
Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") is pleased to announce that it has exercised its option
on the Detour Lake mine property (the "Mine Option Property") and
has acquired ownership of the Mine Option Property from Goldcorp
Canada Ltd. ("Goldcorp") pursuant to the previously announced
agreement (the "Purchase Agreement") between the Company and
Goldcorp described in the Company's April 15, 2008 press release.
Detour Gold is now the sole owner of the Mine Option Property,
including all surface rights.
The Detour Lake gold deposit, currently the focus of Detour
Gold's feasibility study, is located on the Mine Option
Property.
Pursuant to the terms of the Purchase Agreement, the Company has
assumed all of Goldcorp's liabilities and obligations relating to
the Mine Option Property and certain other exploration properties
in the Detour Lake and Massicotte areas of Ontario and Quebec. In
connection with the closing of this transaction, the Company has
become the proponent under an amended mine closure plan for the
Mine Option Property (the "Amended Closure Plan") pursuant to the
Mining Act (Ontario) and has posted a letter of credit with the
Ontario Ministry of Northern Development and Mines in the amount of
Cdn$6.5 million to secure its obligations under the Amended Closure
Plan.
As part of this transaction the following permits will be
transferred to Detour Gold: Certificate of Approval for Industrial
Sewage Works (existing tailing facility), Certificate of Approval
for landfill, approval for two aggregate pits and a land use permit
for the Mine Option Property access road.
In addition, Detour Gold has granted Goldcorp a 1% royalty on
the net smelter returns (the "NSR") derived from the Mine Option
Property in accordance with the terms of the Option and Access
Agreement dated December 10, 1998. The Company has the right to
purchase the NSR from Goldcorp at any time by paying Goldcorp the
sum of Cdn$1 million.
For further information, please contact:
Gerald Panneton, Laurie Gaborit,
President and CEO Director Investor Relations
Tel: (416) 304.0800 Tel: (416) 304.0581
Detour Gold Corporation, Royal Bank Plaza, North Tower, 200 Bay Street,
Suite 2040, Toronto, Ontario M5J 2J1"
About PDX Resources Inc.
PDX (formerly named Pelangio Mines Inc.) holds a 42.4% equity
interest in Detour Gold Corporation (TSX: DGC), which controls the
Detour Lake advanced gold exploration project. PDX provides
prospective investors with an opportunity to participate in
potential increases in the size of the resource at the Detour Lake
project and the value of PDX's equity interest in Detour. PDX's
shareholders are also uniquely situated to benefit from current
moves towards consolidation in the gold industry and increasingly
positive sentiment towards investment in gold.
Reliance on Detour Gold and Forward-Looking Statements
The information contained in this press release is a verbatim
extract of the press release issued by Detour Gold. Although PDX
believes the information included in the press release to be
generally reliable, the data has not been independently verified
and PDX does not assume any liability for the accuracy or
completeness of such information. Furthermore, as noted above in
the verbatim extract, the press release may contain forward-looking
information within the meaning of applicable securities laws. Such
information includes the statements contained in the verbatim
extract regarding Detour Gold's exploration and drilling plans,
plans to update the mineral resource and the estimation of mineral
resources and are subject to risks, uncertainties and other factors
which may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
information. The risks include those that are set out above in the
verbatim extract and those contained in Detour Gold's annual
information form, Item 4.4 - "Description of Business - Risk
Factors" filed on SEDAR as noted above. See also, the risks set out
in Pelangio Mines Inc.'s annual information form, management
information circular dated March 19, 2008 and quarterly and annual
management's discussion and analysis. There is no assurance that
the forward-looking information contained in the press release will
prove to be accurate. Accordingly, readers should not place undue
reliance on the forward-looking information.
All of the information contained in the press release is
qualified by this cautionary statement.
Contacts: PDX Resources Inc. Ingrid Hibbard President & CEO
(905) 875-3828 or Toll Free: 1-877-746-1632 (905) 875-3829 (FAX)
PDX Resources Inc. Warren Bates Vice President Exploration (905)
875-3828 or Toll Free: 1-877-746-1632 (905) 875-3829 (FAX) Email:
info@pdxresources.com Website: www.pdxresources.com