La Quinta Signs Final Agreements for the Acquisition of 7,010 Sq Km in Maniema South Kivu Gold Belt-DRC
April 23 2008 - 1:50PM
Marketwired
VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: LAQ) together with its
partner in the Democratic Republic of Congo, Wa Balengela Kasai
Investments Congo sprl, (WBK) are pleased to announce that they
have signed formal agreements completing the formation of a Joint
Venture Company which will option and explore a contiguous group of
32 exploration licences, or Permis de Recherche, granted to WBK by
the Cadastre Minier under the Mining Code of the Democratic
Republic of Congo. The Research Permits or Exploration Licenses are
located in Maniema and South Kivu Provinces in South Eastern DRC
abutting and covering all the ground between Banro Corporation's
(TSX: BAA) Lugushwa and Namoya gold properties. The WBK Licenses
cover some 7,010 square kilometres of the highly prospective
Twangiza - Namoya gold belt and extends some 120 kilometres to the
West. Banro Corporation has indicated the discovery of
multi-million ounce deposits of gold on both Lugushwa and
Namoya.
Malcolm Swallow, La Quinta's Chairman said "Both we and WBK are
delighted to have finally completed this transaction and we both
look forward to working together to commence exploration on such a
highly prospective piece of ground in a known gold belt, abutting
and between recently discovered major gold deposits. The issuance
of the signed Exploration Permits to WBK on March 10th 2008 by the
Congolese Government removes any uncertainty as to title and we
look forward to working with our partners Wa Balengela Kasai to
outline and discover new gold projects in this highly prospective
gold belt."
This transaction was originally contemplated in an MOU signed
between the parties in August 2006 (See Press Release dated August
28, 2006) and has been delayed pending completion of formal
agreements and the receipt by WBK of the signed Permis de Recherche
for the 32 exploration licenses which were finally received by WBK
on the 10th of March 2008, signed by the DRC Government. The Option
and Joint venture Agreement was conditionally approved by the TSXV
for filing in October 2007, and the signed Agreements have now been
submitted to the TSXV for final acceptance.
The formal Agreements give La Quinta the option to earn up to
80% in the Joint Venture Company with WBK, by funding US$ 10
million in exploration expenditure over five years, with a minimum
expenditure of $2 million per year. Upon completion of a
feasibility study within the five year period, the Joint Venture
will be entitled develop the properties within the 7,010 square
kilometre exploration licence areas by converting them to an
Exploitation Licence or licences, in accordance with the Mining
Code of the Democratic Republic of Congo.
Upon the commencement of the Joint Venture, La Quinta will hold
a 10% interest in the joint venture company and WBK will hold 90%
and La Quinta shall have the right to increase its interest in the
joint venture company to an 80% interest by making payments to WBK
totalling US$1,500,000 and issuing 8,000,000 shares of La Quinta
over the first three years of the agreement. Upon completion of all
share issuances and cash payments, La Quinta will be vested with an
80% interest and WBK with a 20% interest in the Joint Venture
Company.
During the exploration period ownership of the concessions shall
remain vested with WBK and will be transferred to the Joint Venture
Company on completion of the Feasibility Study as contemplated in
the formal documentation. WBK shall be responsible with assisting
the Joint Venture Company with government relations, local liaison
and local management and expediting of the projects in the DRC.
On any gold production, the Joint Venture Company shall pay WBK
a net smelter return of 2.5%. La Quinta has agreed to pay Finders
or Agents fees in respect of the transaction in the amount of
550,000 shares payable by La Quinta in six instalments, over the
first three years of the agreement; prorated and made at the same
time as La Quinta is required to make share payments to WBK. There
is an Area of Mutual Interest (AMI) established stretching 20
kilometres from the outside borders of any of the rights held in
the Joint Venture Company. The parties have also agreed that the
Joint Venture Company will establish operating, local relations and
finance committees with representatives of each of the parties. As
part of the agreement, LAQ will offer two representatives of WBK
representation on the Board of LAQ.
The WBK properties to be optioned and acquired by the Joint
Venture Company will form the primary focus of the Company's
exploration work in Congo. The Company is currently working
adjacent to the WBK Licences on the Kampene gold project also in
DRC. (See Press Releases dated April 17, 2007) In addition the
Company is working in Mexico on the Orofino Gold Project in Sonora
State. The Company has already established a considerable presence
in the DRC and has exploration staff and equipment ready to
commence work immediately on the much larger Maniema - South Kivu
area.
A map showing the location and extent of the exploration leases
and the overall area's relationship to the Twangiza - Namoya gold
belt, plus certified copies of the relevant Permis de Recherche can
be found on the Company's web site at
www.laquintaresources.com.
Malcolm Swallow, the Company's Chairman and CEO and a Qualified
Person, both in BC, Canada and in Europe, acted as the Qualified
Person for this news release, being a signatory of the final
agreements and also being responsible for the acquisition of this
property.
This Press Release includes forward-looking statements that are
subject to risks and uncertainties. All statements within, other
than statements of historical fact, are to be considered forward
looking. There can be no assurances that such statements will prove
accurate and, therefore, readers are advised to rely on their own
evaluation of such uncertainties.
On Behalf of the board
Malcolm JA Swallow, Chairman and CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release,
which has been prepared by management.
Contacts: La Quinta Resources Corp. Glen Watson Senior Vice
President (604) 685-1818 or Toll Free: 1-877-891-4653 Email:
info@laquintaresources.com Website: www.laquintaresources.com