TSX.V - GMG
VANCOUVER, July 12, 2011 /PRNewswire/ - Robert L. Card, President of Gulfside Minerals
Ltd. ("Gulfside" or the "Company"), reports on activities in
Mongolia.
In 2009 the Company acquired an interest in the Onjuul Lignite
Project located in Central
Mongolia. During the winter of 2009 the Company conducted an
exploration program of 2000 meters of core drilling on the
project.
During 2010 the Company proposed amendments to the acquisition
agreements to enable the Company to finance the large up-front
acquisition payments and continue exploration activities. The
Company presented the project to a large number of Brokers,
financiers, institutions and hedge funds over the first 10 months
of 2010. Despite all this exposure the Company was unable to raise
additional financing for the project.
In January of 2011, the Company again presented a revised
proposal to the vendors which would have allowed the Company to
proceed with additional exploration of the properties and vary the
acquisition payments. In May of 2011, the vendors indicated a
willingness to discuss a revised acquisition agreement and the
President traveled to Ulaanbaatar, Mongolia to meet with the vendors and come up
with a new agreement. The outline of a new agreement was agreed to
but the Company was required to pay initial funds within 30 days
and be able to pay additional funds to the vendors as well as to
conduct an exploration program. Total funds required exceeded
eight million dollars.
It soon became apparent that as attractive as the deal was, the
Company was unable to raise the required funding. Realizing that
the Company could not proceed further we were able to introduce a
capable interested party to the vendors. This party, Lucky Strike
Resources, has, subject to TSX approval, signed a deal with the
vendors. Gulfside released all previous project technical
information including the 2009 - 2000m drill program data
supervised by Norwest Corp. and assay results by Stewart Group Labs
to Lucky Strike Resources in exchange for a 2% royalty on Net
Production.
While in Mongolia, the
President met with the other owners of ECM LLC who control the
Erdenetsogt property. They reported that they have completed work
to qualify the property for a Mining License. Once this is achieved
the Company will be in line to receive the balance of the sale
price agreed to last year on the sale of its 5% interest in ECM
LLC. The company is owed a minimum of $1.5
million. If this is not paid on or before October 28, 2011, then the 5% interest will
revert to the Company. (See News Release October 28, 2010)
On Behalf of the Board of Directors,
Gulfside Minerals Ltd.
"Robert L. Card"
Robert L. Card
President
Neither 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."
Forward-Looking Statements: This document includes
forward-looking statements. Forward-looking statements include, but
are not limited to, statements concerning GMG's planned exploration
program in Mongolia and other
statements that are not historical facts. When used in this
document, the words such as "could," "plan," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions are
forwardlooking statements. Although GMG believes that its
expectations reflected in these forward looking statements are
reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with
these forward-looking statements. Important factors that could
cause actual results to differ from these forward-looking
statements are disclosed under the heading "Risk Factors" and
elsewhere in the corporation's periodic filings with Canadian
securities regulators.
SOURCE Gulfside Minerals Ltd.