Trading Symbol: TSX-V: GGD
Shares Issued: 55,716,665
HALIFAX, April 13 /CNW/ - Terry Coughlan, President and CEO of GoGold
Resources Inc. ("GoGold" or the "Company"), is pleased to announce that
the TSX Venture Exchange has granted final approval of the Fundamental
Acquisition, and that the Company has closed the Fundamental
Acquisition originally announced on February 15, 2011 and updated in a
news release on March 23, 2011.
"We are extremely pleased to have closed this transaction to acquire a
very large and prospective gold and silver land package in Durango,
Mexico after two years of work by the vendors assembling and sampling
the properties. In addition, we look forward to working with their team
whose infrastructure is up and running and who have experience finding,
building and financing mines in Mexico."
GoGold has acquired all of the issued and outstanding securities of
Mexican Gold Holdings Corporation Incorporated ("MHC"), a Canadian
company. MHC and MHC's wholly owned Canadian subsidiary, North American
Gold Holdings Corporation Incorporated ("NAHC"), together own 100% of
Minera Dorango Dorado S.A. DE C.V., a Mexican company, ("MDD"). MDD is
a party to agreements to earn a 100-per-cent interest in five (5) gold
and silver properties consisting of a number of Mexican mining
concession titles (the "Claims") covering approximately 24,000 hectares
in Durango, Mexico (the "MDD Agreements").
GoGold has issued 14,000,000 common shares of the Company to the
shareholders of MHC and has paid a total of $1,100,000. The 14,000,000
common shares issued will be subject to a 4 month hold period.
The terms of the MDD Agreements provide MDD with an option to acquire a
100% interest in the Claims in exchange for the following:
a first year payment of $140,000;
a total work commitment for all Claims for the first three years of
$900,000 and a total work commitment for years four through eight for
all Claims of $2,650,000; and,
paying a minimum advance royalty of $130,000 per annum starting in year
three and ending in year eight. The royalty is based on a payment of up
to $4.00 per ounce of gold equivalent NI 43-101 compliant mineable
reserves ("Reserves"). Any advance royalty payments will be applied
against the final royalty payment due. MDD has agreed to pay the
current optionors of the Claims an ongoing royalty of up to $4.00 per
ounce of any future increase in Reserves.
MDD may exercise the option to acquire the Claims at any time by paying
the royalty or at the end of the eight year period provided all
payments above have been made.
A geological report for the Claims compliant with National Instrument
43-101 ("NI43-101") has been completed and filed on SEDAR and can be
viewed at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This News Release includes certain "forward-looking statements". All
statements other than statements of historical fact, included in this
release, including, without limitation, statements regarding potential
mineralization and reserves, exploration results, and future plans and
objectives of GoGold, are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from GoGold's expectations are exploration risks
detailed herein and from time to time in the filings made by GoGold
with securities regulators.
(Not for distribution to US wire services or for dissemination in the
United States of America)
SOURCE GOGOLD RESOURCES INC.
For further information:
Terence F. Coughlan, President,
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898,
or visit GoGold's website at: www.gogoldresources.com.