VANCOUVER, Jan. 6 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the
"Company") is pleased to announce that Eldorado Gold Corporation ("Eldorado")
and Brascan Recursos Naturais SA ("Brascan"), a wholly owned subsidiary of
Brascan Brasil, have agreed to defer for up to one year the payments due on
the second anniversary of the closing of its agreement (the "Agreement") to
acquire 100% of the issued shares of Aurizona Goldfields Corporation
("Aurizona"), as announced in the Company news release of December 21, 2006.
The terms of the Agreement require Luna to make a series of staged
payments, some of which are conditional upon the project reaching commercial
production, to each of Eldorado and Brascan in exchange for the shares of
Aurizona. The second anniversary payments (the "Payments"), contractually due
on January 31, 2009, consist of US$1.5 million to each of Brascan and
Eldorado, and a further US$670,000 due to Brascan in lieu of shares in Luna.
These second anniversary payments represent the final pre-production payments.
The Agreement terms have been amended to permit the deferment of the
Payments until January 31, 2010; however, any portion of the payments
outstanding as of July 31, 2009, shall be increased by 10% of the amount
"This Agreement has removed a significant short term financial burden on
the Company and we thank Eldorado and Brascan for their support," stated Jim
Bahan, Luna's CEO. "Although the market is difficult, the Company believes the
gold sector will remain buoyant and enters the New Year with great optimism."
In addition, Mr. Bahan stated that "Since the Piaba Feasibility Study was
completed, the Brazilian Real has weakened by approximately 25% compared to
the US dollar, resulting in a lower capital requirement to construct the
project and significantly lower operating costs which were estimated in US
dollars. Another potential benefit is that the project is within a designated
Brazil development zone and eligible for fiscal benefits, including federal
and state tax reductions and development loan finance."
He further added "The Company is currently considering conventional
equity and loan finance opportunities, as well as reductions of the initial
capital investment further by optimizing certain project activities, such as
the tailings dam and power line."
In its press release of December 12, 2008 reference "Luna Gold
renegotiates earn-in terms for the Cachoeira project" mention was made of CNM
as a Kinross Brazil subsidiary company. Kinross wishes to clarify that CNM
"Companhia Nacional de Mineração", is a wholly-owned subsidiary of Kinross
Gold Corporation. Luna apologises for this error.
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
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended or any state securities laws and may not be offered or
sold within the United States or to U.S. persons unless registered under the
United States Securities Act of 1933 and applicable state securities laws or
an exemption from such registration is available.
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, 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 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.
For further information:
For further information: contact Investor Relations at (604) 689-7317,
or toll free at 1-866-689-7317