VANCOUVER, April 16 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the
"Company") announces that it has entered into an amended and restated letter
of intent with Sandstorm Resources Ltd. ("Sandstorm") concerning the proposed
gold stream transaction relating to the Company's Aurizona Project, as
announced on March 12, 2009.
The material terms of the original letter of intent have been amended as
- Sandstorm will not provide a loan of US$7.2 million to Luna.
- Sandstorm has agreed to issue 5,500,000 common shares to Luna in
addition to the upfront consideration of US$17.8 million.
- Upon the execution and delivery of a binding definitive gold purchase
agreement between Sandstorm and Luna, the upfront cash payment and
the shares will be placed into escrow and will be released to Luna
upon the satisfaction of certain conditions that were previously
announced, including the closing by Sandstorm of a financing to raise
net proceeds of at least C$44 million on or before April 30, 2009.
About Luna Gold Corp.
Luna is a mining exploration company focused on the acquisition,
exploration, and development of gold resources and advanced stage gold
exploration projects in northeastern Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Jim Bahan - CEO
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.
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific factors
identified in Luna Gold Corp.'s periodic filings with Canadian Securities
Regulators. These factors include the inherent risks involved in the
exploration and development of mineral properties, the uncertainties involved
in interpreting drill results and other exploration data, the potential for
delays in exploration or development activities, the geology, grade and
continuity of mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the Company's
expectations, accidents, equipment breakdowns, title matters, labor disputes
or other unanticipated difficulties with or interruptions in production and
operations, fluctuating metal prices, the possibility of project cost overruns
or unanticipated costs and expenses, uncertainties relating to the
availability and costs of financing needed in the future, the inherent
uncertainty of production and cost estimates and the potential for unexpected
costs and expenses, commodity price fluctuations, currency fluctuations,
regulatory restrictions, including environmental regulatory restrictions and
liability, competition, loss of key employees, and other related risks and
uncertainties. The Company undertakes no obligation to update forward-looking
information except as required by applicable law. Such forward-looking
information represents management's best judgment based on information
currently available. No forward-looking statement can be guaranteed and actual
future results may vary materially. Accordingly, readers are advised not to
place undue reliance on forward-looking statements or information.
For further information:
For further information: Investor Relations at (604) 689-7317 or toll
free at 1-866-689-7317