AuRo Resources and White Gold Corporation to Enter Into Business Combination
March 09 2011 - 12:00PM
Marketwired Canada
AuRo Resources Corp. (the "Company") (TSX VENTURE:ARU) is pleased to announce
that it has entered into a binding letter of intent to acquire all of the issued
and outstanding securities (the "Target Shares") of White Gold Corporation
("White Gold"), an arm's length private Alberta corporation, engaged in gold
exploration in Colombia, South America. The combined AuRo Resources and White
Gold will possess a large and diverse strategic property portfolio of
approximately 70,000 hectares within Colombia's most prolific gold, silver and
copper exploration and mining regions.
Overview of White Gold
Through its wholly-owned Colombian subsidiary, Oro Barracuda SAS., White Gold
has solicited nearly 70,000 hectares in Colombia for mineral exploration. The
concessions are a combination of concession titles and applications, located in
two major gold regions of Colombia, covering parts of five departments
("Provinces"), including nearby the California-Vetas gold-silver mining
district, host to Greystar Resources Ltd.'s multi-million ounce Angostura
gold-silver deposit and Ventana Gold Corp.'s 3.5 million oz La Bodega gold
discovery. The balance of properties are located in the departments of Tolima
and Quindio in three distinct blocks near the La Colosa project, a 12.3 million
oz gold deposit discovered by AngloGold Ashanti Ltd. La Colosa is one of the
largest new gold discoveries in South America.
FOR THE PURPOSE OF PROVIDING INFORMATION RELATING TO THE SURATA GOLD PROJECT -
SANTANDER, ARBOLEDAS GOLD PROJECT - NORTE DE SANTANDER, AND LA COLOSA GOLD
PROJECTS - TOLIMA AND QUINDIO (THE "PROPERTIES"), THE COMPANY IS RELYING ON
INFORMATION PROVIDED TO IT BY WHITE GOLD. INFORMATION PERTAINING TO THE SURATA
AND ARBOLEDAS PROPERTIES INCLUDES INFORMATION DERIVED FROM NATIONAL INSTRUMENT
43-101 REPORTS, AS PREPARED FOR WHITE GOLD CORPORATION BY ANDREW J. TURNER,
P.GEO. INFORMATION PERTAINING TO THE LA COLOSA PROPERTIES WAS DERIVED FROM
HISTORICAL GEOLOGICAL INFORMATION AND DOES NOT PRESENTLY CONFORM TO THE
STANDARDS AS OUTLINED IN NATIONAL INSTRUMENT 43-101.
Key Projects:
Surata Gold Project - Santander
-- Interests in approximately 20,000 hectares located approximately 10-25
kilometres from Ventana Gold Corp.'s La Bodega project and Greystar's
Angostura project.
-- Initial samples include sulphide bearing (pyritic) quartz veins with
assays up to 3.06 g/t gold. These samples possessed a fairly unique
geochemical signature with a strong epithermal association including
elevated arsenic, antimony, bismuth and copper.
-- The Surata property has bedrock geology similar to that which hosts
mineralization in the California-Vetas district.
-- Gold has been discovered by in an area 10 kilometres northwest of La
Bodega along a parallel NE trending fault structure.
Arboledas Gold Project - Norte de Santander
-- Interests in approximately 14,000 hectares located approximately 18-25
kilometres north of the La Bodega and Angostura deposits.
-- Gold has been identified in areas exposed by landslides and active
artisanal mining.
La Colosa Gold Projects - Tolima and Quindio
-- White Gold has titles and applications for concessions in three separate
areas in the departments of Tolima and Quindio located south, east and
west of AngloGold's La Colosa discovery.
-- The land package totals approximately 31,000 hectares, with the closest
group of concessions approximately 12km from the La Colosa deposit. With
reported resources of 12.3 million ounces, La Colosa is the largest new
gold discovery in Colombia.
Key Terms of the Transaction:
-- The Company will offer to acquire the Target Shares in exchange for
common shares in the capital of the Company with an approximate
aggregate value of $5 million.
-- The number of Issued Shares to be issued shall be the greater of (i)
18,490,000 common shares or (ii) such number of common shares having an
aggregate value of $5 million. These shares will be distributed to
approximately 100 White Gold shareholders.
-- The Company will commit a minimum of $350,000 towards exploration and
development of the Properties following the execution of a definitive
agreement.
-- The entering into of a definitive agreement is subject to regulatory
approval and the completion of due diligence by each of the Company and
White Gold, and the approval of the transaction by their respective
boards of directors.
-- On closing, White Gold's founder and President, John Gomez, will join
the Board of Directors of the Company. Mr. Gomez is an entrepreneur with
20 years experience in investor relations, corporate finance, and
business development with public and private companies. He has developed
communications programs for several leading Canadian and international
companies including corporations currently or previously listed on the
NASDAQ and TSX Venture Exchanges. Mr. Gomez is founder of U3O8 Media
Inc. (www.u3o8.biz), a leading online investor portal on the uranium
industry and founder of RAGOM Sports Inc., a retailer of professional
sports merchandise. Mr. Gomez has a B.A. from the University of
Victoria, British Columbia.
ON BEHALF OF THE BOARD
Mark Lawson, President & CEO
ON BEHALF OF THE BOARD OF WHITE GOLD CORPORATION
John Gomez, President & CEO
Cautionary Note Regarding Forward-looking Statements
Certain statements contained in this news release may constitute forward-looking
information, within the meaning of Canadian securities laws. Forward-looking
information may relate to this news release and other matters identified in the
Company's public filings, Forward-looking information and anticipated events or
results and can be identified by terminology such as "may", "will", "could",
"should", "expect", "plan", "anticipate", "believe", "intend", "estimate",
"projects", "predict", "potential", "continue" or other similar expressions
concerning matters that are not historical facts and include, but are not
limited in any manner to, those with respect to capital and operating
expenditures, economic conditions, availability of sufficient financing, receipt
of approvals, satisfaction of closing conditions and any and all other timing,
development, operational, financial, economic, legal, regulatory and/or
political factors that may influence future events or conditions. Such
forward-looking statements are based on a number of material factors and
assumptions, including, but not limited in any manner, those disclosed in any
other public filings of the Company, and include the ultimate availability and
final receipt of required approvals, sufficient working capital for development
and operations, access to adequate services and supplies, availability of
markets for products, commodity prices, foreign currency exchange rates,
interest rates, access to capital markets and other sources of financing and
associated cost of funds, availability of a qualified work force, availability
of manufacturing equipment, no material changes to the tax and regulatory regime
and the ultimate ability execute its business plan on economically favorable
terms. While we consider these assumptions to be reasonable based on information
currently available to us, they may prove to be incorrect. Actual results may
vary from such forward-looking information for a variety of reasons, including
but not limited to risks and uncertainties disclosed in other Company filings at
www.sedar.com and other unforeseen events or circumstances. Other than as
required by law, the Company does not intend, or undertake any obligation to
update any forward looking information to reflect, among other things, new
information or future events.
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