TORONTO, July 12 /CNW/ - Gold World Resources Inc. (GDW:TSX-V) ("GWR" or the "Company") is pleased to announce that it has signed a Binding Agreement for cooperative exploration, mining and production of gold of the operating Jin Yin Dong Gold Mine ("JYD Mine") from Guizhou Rong Huai Investment Development Ltd. ("GZRH") GWR and GZRH agreed to establish a 70/30 percent equity interest in a Cooperative Joint Venture Company ("CJV") with 80/20 percent profit or product distribution.
GZRH agreed to have the mineral rights transferred and registered in the name of the CJV and GWR has agreed to invest US$2.5 million by installments within 2 1/2 years from date of government approval of the CJV contract. GWR will also issue shares, warrants or options to 2 VIP's of GZRH. Both parties will use their best efforts to have the CJV Company incorporated within 150 days after the signing of this agreement and start the operation. All conditions are subject to regulatory approval.
GZRH is holding one Exploration Permit for the 41.3km(2) JYD Mine, including a 17.8km(2) Mining license. The licensed mine production capacity is 30,000 tonnes of ore per year. Both, the Exploration permit and the Mining license will be transferred to the CJV Company.
The current size of the mine, (see press release March 23, 2010) does not reflect the excellent upside gold potential which previous geological surveys and operating mines in the vicinity demonstrate.
The JYD Mine, a consolidation of 3 mines, dates back to the Ming emperors of China, is located between the western Hunan Province and south-eastern Guizhou Province, where hundreds gold mineralized sites have been found and some of them have been put into production. JYD Mine's ore grades vary from 3.12 g/t to 140.7 g/t as a result of the coarse gold-nugget effect. Currently, the mine uses a simple shaker table approach for gold recovery; GWR believes that recovery levels can be easily upgraded by adding additional extraction processes.
GWR is preparing currently the work plan and the budget for it to be approved by the Board of directors. The formal version of the Agreement and Articles of Association are being prepared by lawyers in Beijing and Toronto.
The acquisition of the JYD Gold Mine is in line with GWR's vision and objective to become a gold producer by putting a gold mine on the Company's balance sheet, positioning the Company for growth, and increase shareholder value.
ON BEHALF OF THE BOARD
Chairman & CEO
Gold World Resources Inc.
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Securities Act (Alberta), including statements concerning Gold World Resources' plans for the Property, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gold World Resources, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Gold World Resources Inc.
For further information: For further information: Hermann Derbuch, P.Eng., Tel.: 416.594.9888, Fax: 416.594.1967