SearchGold Completes Transaction on Arae-Gassel in Burkina Faso and Obtains a 10% Stake in Swala Resources plc
July 06 2010 - 12:32PM
Marketwired
SearchGold Resources Inc. ("SearchGold")(TSX VENTURE:
RSG)(FRANKFURT: S1O) is pleased to announce a transaction with
Swala Resources plc ("Swala") on the Arae-Gassel Gold Property
("Arae-Gassel") located in northern Burkina Faso, West Africa.
Under the terms of the agreement, Swala will purchase the
remaining 60% interest in Arae-Gassel for 4,572,806 common shares
of Swala, or 10% of its issued and outstanding capital at the time
of the transaction. These shares are being issued at a deemed price
of $0.31 each. Under the purchase and sale agreement between the
parties, an additional 111,111 common shares of Swala at $0.31 each
will be issued in 2010 if Swala completes certain transactions
involving the issuance of 1,000,000 of its common shares to third
parties.
Philippe Giaro, President and CEO, stated "We are very pleased
with this transaction which allows us to develop Arae-Gassel while
giving SearchGold an opportunity to get exposure to additional
mining exploration projects through an important shareholding in a
young and dynamic Company with an exclusive focus on African
situations. Swala's management, a team of acknowledged African
experts, is exceptionally well suited to aggressively develop the
Company. Recent drilling results from Arae-Gassel have further
outlined the potential of the project. The consolidation of the
property in one entity will allow Swala to fast track the
development of the project."
About Arae-Gassel
Arae-Gassel is directly adjoining Avocet's licence hosting the
1.6 million ounce Inata gold deposit (5.2 million tonnes @ 2.3 g/t
Au for 378,400 ounces of Measured Resources and 19.8 million tonnes
@ 1.6 g/t Au for 1,018,400 ounces of Indicated Resources). Avocet's
current life of mine plan has determined an operation that will
produce at least 120,000 ounces of gold annually over an initial
7-year mine life.
About Swala Resources plc
Swala is a private UK Mining Company focussed on the development
of large scale African mining projects. In addition to its joint
venture in Burkina Faso, it is currently developing a portfolio of
gold, nickel and PGM projects in Mozambique, Zimbabwe, Gabon and
the DRC. The projects in Gabon and DRC are large scale, early stage
exploration where Swala is collaborating with AngloGold and Anglo
American Plc respectively. Swala's management team comprises mainly
ex-Anglo American senior executives and intends on leveraging its
mining, political, technical and exploration skills to establish a
strong foothold in Africa.
Swala's current largest shareholder is Umbono Minerals and
Mining LLC, part of Umbono Capital, a dynamic BEE empowered South
African fund manager and investment company. Swala intends to list
in the near-term by means of an IPO on an established Stock
Exchange (TSXV or AIM) or through reversal in a listed entity.
For further information please visit www.swalaresources.com
About SearchGold Resources Inc.
SearchGold is a Canadian-based mining exploration company whose
primary mission is to target, explore and develop gold deposits in
Africa. The Company is currently involved in Burkina Faso, Gabon
and Guinea; it has recently been evaluating mining projects in new
African jurisdictions, which are geographically accretive with its
current position. Through innovative corporate transactions,
SearchGold has been able to retain an interest in all the important
assets it has acquired and developed during its existence as a
public company and intends on leveraging its long established
presence in Africa to pursue its development.
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.
Contacts: SearchGold Resources Inc. Philippe Giaro President
& CEO +32-473-52-30-29 phgiaro@skynet.be
Searchgold Resources Inc. (TSXV:RSG)
Historical Stock Chart
From Jul 2024 to Aug 2024
Searchgold Resources Inc. (TSXV:RSG)
Historical Stock Chart
From Aug 2023 to Aug 2024