Wesgold Acquires 11% of Cordoba Property, with Option to Increase to 51%
Tuesday, Apr 03, 2012
VANCOUVER, April 2, 2012 /PRNewswire/ - Wesgold Minerals Inc. (TSX-V: WSG) is pleased to announce that it has completed its acquisition of an initial 11% interest in the Cordoba porphyry copper-gold property in Colombia from Minatura International LLC. The purchase price of $4.03 million was paid by cash payments totaling $2.03 million to Minatura, and the forgiveness of the $2.0 million loan provided to Minatura in July 2011. In addition, Minatura has been issued warrants to purchase up to 5.0 million shares of Wesgold.
Wesgold now has the option to acquire an additional 40% interest (for a total of 51%) in the Cordoba Property by expending $15.0 million on exploration of the Property and paying to Minatura an additional$2.0 million within 2.5 years. $5.0 million of the exploration expenditures is a firm commitment. The warrants issued to Minatura are only exercisable once the Company has incurred the $5.0 millionexpenditure.
If Wesgold acquires the full 51% interest, Minatura will have a one-time right to sell its remaining 49% interest in the Cordoba Property to the Company in consideration for shares in the Company. The issuance of these shares would be subject to approval by Wesgold's shareholders.
The Cordoba Property consists of four granted mining concession contracts, one pending contract and five applications for a total of 25,790 hectares located in the Municipality of Puerto Libertador, in the Department of Cordoba, about 200 km north of Medellin, Colombia. The Property covers under-explored marine volcano-sedimentary rocks and felsic to intermediate intrusives with multiple artisanal gold miners extracting gold from the broad based stockwork zones within the Property.
Simon Ridgway, Chairman of Wesgold, comments, "Following several months of legal and technical due diligence, Wesgold has forged ahead with the acquisition of an interest in this large and exciting property package. Due diligence sampling has confirmed the potential for the Cordoba Property to host world class porphyry-style copper-gold deposits. We are now in the process of assembling the technical team to realize that potential."
Harmen Keyser, P.Geol. (NWT), the President of the Company and a Qualified Person in accordance with NI 43-101, supervised the Company's work program at the Cordoba Property and is responsible for the accuracy of this news release.
The Minatura Group is privately held and engaged in the business of exploration, development and extraction of precious and base metals in Colombia, South America and Ghana, Sierra Leone andSenegal in West Africa. Minatura holds various hard rock and alluvial projects in Colombia and West Africa totaling over 450,000 hectares of mining titles and mining claims. Minatura is dedicated to achieving a high return for its investors while adhering to the highest environmental and safety standards in its projects and creating legacy micro-economies for the communities in which it operates. Contactinfo@minatura.com or see www.minatura.com for more information.
SOURCE Wesgold Minerals Inc.