Desert Gold Amends Terms for the Sale of its Interest in the Goldbanks Project
August 24 2012 - 7:21AM
PR Newswire (Canada)
TSX Venture Symbol: DAU (Not for Dissemination to United States
Newswire Services or for Dissemination in the United States)
TORONTO, Aug. 24, 2012 /CNW/ - Desert Gold Ventures Inc. (the
"Company" or "Desert Gold") announces that the asset purchase
agreement (the "Purchase Agreement") it entered into with
Winnemucca Gold Corp. ("Winnemucca") on July 10, 2012 to sell the
Company's 50% participating interest in the Goldbanks mineral
exploration project located in Pershing County, Nevada, USA (the
"Goldbanks Project") has been amended. The Purchase Agreement now
provides for a total purchase price to Desert Gold of
$3,500,000. $3,000,000 of the purchase price will be in cash,
of which $500,000 will be payable on closing, $1,000,000 payable
six months after closing and $1,500,000 payable 12 months after
closing. $500,000 of the purchase price will be satisfied by
Winnemucca issuing to Desert Gold common shares of Winnemucca, 12
months after closing, at Winnemucca's most recent equity financing
price, or if listed on a stock exchange, at the 20-day volume
weighted average market price. In the event that Winnemucca
purchases any or all of Kinross Goldbanks Mining Company's
("Kinross"), the other 50% owner of the Goldbanks Project, 50%
participating interest in the Goldbanks Project within 60 days of
closing, Winnemucca shall pay to Desert Gold an additional $500,000
in cash. If any of the post-closing payments are not made, all
legal and beneficial title to the Goldbanks Project will revert to
Desert Gold. Desert Gold has provided notice of the amended terms
to Kinross. Kinross will have a pre-emptive right to purchase
Desert Gold's interest on the same terms, such right being
exercisable until September 24, 2012. If Kinross does exercise its
pre-emptive right, the Purchase Agreement will be terminated and
Desert Gold will pay Winnemucca a break fee of 8% of the aggregate
value of the consideration agreed to be received by Desert Gold for
its interest in the Goldbanks Project. Closing is scheduled for the
earlier of (i) September 26, 2012 or (ii) within 5 days of Kinross
waiving its pre-emptive right. Closing is subject to certain
conditions, including Kinross not exercising its pre-emptive right.
This sale will allow the Company to focus its resources and efforts
on its core properties in Africa. About Desert Gold Ventures Inc.
Desert Gold Ventures Inc. is an advanced exploration and
development company which holds a portfolio of advanced mineral
projects located in Rwanda, Mali and Senegal together with a 50%
participating interest in a joint venture agreement with Kinross
Goldbanks Mining Company (a subsidiary of Kinross Gold Corporation
of Toronto, Ontario) in respect of the Goldbanks Mining property
located in Pershing County, Nevada, USA. This news release has been
prepared on behalf of the Board of Directors of Desert Gold, which
takes full responsibility for its contents. FORWARD-LOOKING
STATEMENTS This press release includes certain "forward-looking
statements". All statements that are not historical facts,
including without limitation statements regarding future estimates,
plans, objectives, assumptions or expectations of future
performance, are "forward-looking statements". All statements
regarding the ability of the Company to successfully complete this
transaction, the anticipated closing date, the anticipated expiry
date of the Kinross' pre-emptive right, the anticipated post
closing payments and consequences of non-payment, and the Company's
strategy to focus on properties in Africa are forward-looking
statements that involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. We caution you that such
"forward looking statements" involve known and unknown risks and
uncertainties that could cause actual results and future events to
differ materially from those anticipated in such statements. For
additional information on such risks, please consult "Risks and
Uncertainties" found on page 14 of the Company's Management
Discussion and Analysis for the year ended December 31, 2011. The
Company expressly disclaims any obligation to update any
forward-looking statements except as may be required by law.
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. Desert Gold Ventures Inc. CONTACT: Jared
Scharf, Chief Financial OfficerTel. (416) 662-3971e-mail:
jared.scharf@desertgold.caFor further information on Desert Gold
Ventures Inc. please visit ourwebsite at: www.desertgold.ca
Copyright
Common Shares (TSXV:DAU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Common Shares (TSXV:DAU)
Historical Stock Chart
From Jul 2023 to Jul 2024