TORONTO, April 26 /CNW/ - GUYANA PRECIOUS METALS INC. (TSXV: GPM) ("GPM") announces that it has entered into an agreement (the "Peters and Aremu Agreement") with Guyana Goldfields Inc. ("GGI") pursuant to which GPM has agreed to purchase and GGI has agreed to
sell GGI's 100% interest in the Peters property and Aremu property
(collectively, the "Peters and Aremu Properties") located in Guyana, South America for US$2,400,000 payable in cash
upon closing (the "Peters and Aremu Transaction").
GPM has also agreed to enter into an agreement (the "Arakaka Agreement") to purchase and GGI has agreed to sell GGI's 70.1% participating
interest in the Arakaka property (the "Arakaka Property") located in Guyana, South America for US$3,734,000 and a 1% net
smelter royalty in favour of GGI on the GGI's participating interest
(the "Arakaka Transaction").
The Peters property consists of approximately 8,358 acres and the Aremu
property consists of approximately 9,134 acres. The Arakaka Property
consists of approximately 77,000 acres.
GPM formed an independent committee of its board of directors to
consider the terms of the Peters and Aremu Transaction and the Arakaka
Transaction (collectively the "Transactions"). In addition, the independent committee retained Cormark Securities
Inc. ("Cormark") to provide a fairness opinion and has received its verbal
confirmation that the Transactions are fair, from a financial point of
view, to GPM and its shareholders. Cormark's written opinion will be
included in the materials to be sent to GPM's shareholders in
connection with the meeting to be held to consider the Transactions
(the "Meeting"). The Meeting is scheduled to be held on June 20th, 2011.
Completion of the Transactions are subject to a number of conditions,
including, without limitation, receipt of the approval of a majority of
GPM's shareholders (excluding GGI) at the Meeting and the receipt of
all required regulatory approvals, including the approval of the TSX
Venture Exchange. In addition, GPM's acquisition of the Arakaka
Property is subject to the expiry or waiver of 30 day rights to acquire
in favour of the former and current venture partners in the Arakaka
Closing of the Transactions are scheduled to occur on or before June 30,
About Guyana Precious Metals Inc.
GPM is a Canadian based exploration and development company. GPM
presently controls and holds the Coppermine River Project, Nunavut
Territory and the Rory Claims, Yukon Territory. Both of these projects
are described as Copper-Nickel-Platinum-Palladium prospects. Guyana
Goldfields Inc. currently holds for investment purposes approximately
8% of the issued shares of GPM.
Forward Looking Statements - Certain information set forth in this news
release may contain forward-looking statements that involve substantial
known and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, certain of
which are beyond the control of GPM, including, but not limited to the
impact of general economic conditions, industry conditions, volatility
of commodity prices, risks associated with the uncertainty of resource
and reserve estimates, currency fluctuations, dependence upon
regulatory approvals, the availability of future financing and
exploration risk. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.
NEITHER THE 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.
SOURCE Guyana Precious Metals Inc.
For further information:
For further information about GPM:
Guyana Precious Metals Inc.
141 Adelaide Street West
Toronto, Ontario M5H 3L5
Attn: John Patrick Sheridan
Tel: (416) 628 5936
Fax: (416) 628 5935