Dana Considers Possible Base Metals Company Spin Off
September 16 2009 - 8:30AM
Marketwired
(OTCBB: DANR) (FRANKFURT: OD0) -- Dana Resources is a US-based
precious metals development company with advanced stage gold and
base metal properties in Peru. Dana is evaluating a strategy to
maximize shareholder value and focus the company on the development
of the Collota Gold deposit.
One key strategy would be to spin out a new base metals-focused
company with copper and base metals experienced management team and
issue shares to our existing shareholders of Dana. This would give
the existing management more focus on the development of our gold
assets. With Dana planning to begin gold production at its 100%
owned 1.17 million ounce Collota gold deposit by 2012, the company
believes that the Turmalina and Las Horquetas properties would
benefit from a separate listing in order to maximize shareholder
value.
The Turmalina high-grade copper resource is located in Northern
Peru in the Piura region and covers approximately 600 hectares. As
of 2007, existing high-grade reserves were 305,586 tons of 2.5%
copper (15 million pounds of copper). Dana Resources believes the
Turmalina Project initially has a copper potential of over 660
million pounds, valued at approximately $1.9 billion. Additional
development plans are being set to increase existing reserves.
The Las Horquetas project is located in close proximity to
Turmalina. BHP Billiton's proprietary Falcon survey was flown over
the project. Samples of 5.39 grams per ton gold and 5.71% copper
have been assayed.
Northen Peru is a hotbed for mineral explroation, development
and production. Within the region is TSX listed Candente Resources.
Their Cañariaco Copper-Gold Porphyry Project contains a resource of
6.46 Billion pounds of copper. Operators in the area include
Chinalco, China Minmetals and Jiangxi Copper.
Mr. DeMelt, Dana Resources' President has commented, "With gold
and copper prices surging, we are weighing the opportunity with
institutional financiers of spinning off some of our key base
metals projects into a new public company. This effort would create
distinct Dana Gold and Dana Copper companies. Existing shareholders
would receive shares in both companies and realize the full
potential of ownership in two of Peru's emerging precious and base
metals companies. Strategically, this move can accelerate Dana's
plan to production of both gold and copper in the current high
priced commodity era."
About Dana Resources
Dana Resources is a precious and base metals exploration company
with offices in the United States and Peru. Dana's management team
possesses local knowledge, extensive international connections, a
wealth of experience and technical expertise in mining, mining
finance, exploration and production. Dana Resources has acquired a
portfolio of gold, silver and other precious & base metal
properties located in Peru's most prolific mining regions.
With Peru growing as a producer of gold, silver and other metals
on the international market, Dana Resources is well positioned to
capitalize on the escalating global demand for commodities. The
management team and Directors are committed to creating value for
their shareholders and to the long-term success of Dana
Resources.
The statements contained herein which are not historical are
forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements, including,
but not limited to, certain delays beyond Dana Resources control
with respect to the commencement of drilling operations,
concentration in mineral deposits, delays in testing and evaluation
of ore samples, and other risks detailed from time to time in Dana
Resources' filings with the Securities and Exchange Commission.
Contact: Leonard DeMelt Dana Resources www.danaresources.com
Email Contact
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