WHETSTONE MINERALS ANNOUNCES ANTICIPATED CLOSING DATE FOR ACQUISITION AND PRIVATE PLACEMENT AND PROVIDES AN UPDATE ON INDIGENISATION AND ECONOMIC EMPOWERMENT LEGISLATION IN ZIMBABWE

CALGARY, April 1 /CNW/ - (TSX Venture: WMI) - Whetstone Minerals Ltd. ("Whetstone") announces that, further to its press releases dated November 2, 2010, December 1, 2010, December 31, 2010, January 21, 2011 and February 22, 2011, Whetstone anticipates that, subject to the receipt of all necessary regulatory approvals (including TSXV approval), it will complete the previously announced acquisition (the "Acquisition") of the outstanding share of DGL Investments Number Four Mauritius from Duration Gold Limited in consideration for the issuance of 45,000,000 common shares of Whetstone to Duration Gold Limited and the private placement financing of 50,000,000 common shares of Whetstone at an issue price of U.S.$0.10 per share (the "Private Placement") on or before April 8, 2011.

The Government of Zimbabwe gazetted the Indigenisation and Economic Empowerment Act in 2007. This Act made provision for the indigenisation of up to 51% of all foreign owned businesses operating in Zimbabwe. Regulations in support of the Act were subsequently published in February 2010 in preparation for the implementation of the provisions of the Act.

The Minister of Youth, Indigenisation and Economic Empowerment published on Monday, March 28, 2011, a statutory instrument in the Zimbabwean Government Gazette, General Notice 114 of 2011 (the "Notice"), setting out the requirements for the implementation of the provisions of the Indigenisation and Economic Empowerment Act and its supporting regulations as they pertain to the mining sector.

The Notice defines the minimum indigenisation and empowerment quota as "a controlling interest or 51% of the shares or interests which in terms of the Act is required to be held by indigenous Zimbabweans in the non-indigenous mining business concerned".

The Notice requires that disposals of the required indigenisation interests must be to defined "designated entities", which include the National Indigenisation and Economic Empowerment Fund, the Zimbabwe Mining Development Corporation or any company incorporated by that entity, a statutory sovereign wealth fund that may yet be created, or an employee share ownership scheme or trust.

The Notice states that "the value of the shares or other interests required to be disposed of to a designated entity … shall be calculated on a basis of valuation agreed to between the Minister and the non-indigenous mining business concerned, which shall take into account the State's sovereign ownership of the mineral or minerals exploited or proposed to be exploited by the non-indigenous mining business concerned."

The Notice calls for all non-indigenous mining businesses to submit an indigenisation implementation plan to the Minister within forty five days of the date of the Notice, setting out the manner in which such businesses plan to achieve the indigenisation quota. Such plan, once approved by the Minister, must be implemented within six months of the date of the Notice.

Allan Dolan, Chairman and Interim President of Whetstone commented "Whetstone has factored in the impact of proposed Indigenisation into its business plan and, through Duration Gold Limited, has submitted its plan in compliance with the Indigenisation regulations and intends to comply with the law as in force from time to time."

Further information will be made available as and when discussions have been finalized.

Forward-Looking Statements

In the interest of providing Whetstone shareholders and potential investors with information regarding Whetstone including management's assessment of the future plans and operations of Whetstone, certain statements contained in this press release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. In particular, this press release contains, without limitation, forward-looking statements pertaining to the following: the anticipated timing of the completion of the Acquisition and the Private Placement.

With respect to forward-looking statements contained in this press release, Whetstone has made assumptions regarding, among other things: its ability to obtain the necessary regulatory approvals to complete the Acquisition and the Private Placement and its ability to raise the necessary funds to complete the Private Placement. Although Whetstone believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Whetstone's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the following: the failure of Whetstone to obtain the necessary regulatory approvals to complete the Acquisition and the Private Placement; the failure of Whetstone to raise the necessary funds to complete the Private Placement; and general economic and political conditions in Canada, Zimbabwe and abroad. Readers are cautioned that this list of risk factors should not be construed as exhaustive.  These risk factors are discussed in Whetstone's information circular - proxy statement dated November 2, 2010, as filed with Canadian securities regulatory authorities.

The forward-looking statements contained in this press release speak only as of the date of this press release. Except as expressly required by applicable securities laws, Whetstone does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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 Whetstone Minerals Inc.

For further information:

please contact the Corporation or Charles Vivian of Pelham Bell Pottinger:

Whetstone Minerals Ltd.

Allan Dolan, Chairman and Interim President
and Chief Executive Officer
Phone:  +44 (77) 9697 3008
  Pelham Bell Pottinger

Charles Vivian
Phone:  +44 207 861 3126

To be added to Whetstone's private email list, please contact info@whetstoneminerals.com.

 

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Whetstone Minerals Inc.

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