Peak Gold Ltd. Closes Amapari Mine Acquisition and $326 million Financing



    Trading Symbol (TSXV): PIK
    PIK: WT

    VANCOUVER, April 3 /CNW/ - Peak Gold Ltd. ("Peak Gold" or the "Company"),
formerly GPJ Ventures Ltd. has completed the transactions announced in news
releases on February 19, February 26, and March 22, 2007 and its shares and
warrants will commence trading on the TSX Venture Exchange ("TSXV") on April
4, 2007 under the new symbol "PIK" (PIK.WT for the warrants). The transactions
involved the statutory amalgamation of GPJ Acquisition Co. Ltd (a wholly-owned
subsidiary of Peak Gold's predecessor, GPJ Ventures Ltd.) with Peak Mines Ltd.
a wholly-owned subsidiary of Goldcorp Inc. and the owner of the Amapari Mine
and related assets in Brazil. Under the amalgamation, Goldcorp received
155,000,000 shares of Peak Gold. Peak Gold and Goldcorp also agreed to the
acquisition by Peak Gold from Goldcorp of the Peak Mine and related assets in
Australia for a purchase price of US$200 million to be paid by Peak Gold to
Goldcorp. Completion of this acquisition awaits approval by the Foreign
Investment Review Board in Australia which is expected to be received by the
parties in due course. Financing for Peak Gold was completed through the
issuance of 435,000,000 subscription receipts at $0.75 each ($326,250,000)
which have been converted to 435,000,000 shares of Peak Gold and 217,500,000
warrants exerciseable at $1.50 per share until April 3, 2012. There is no hold
period in Canada on the shares or the warrants. This financing was led by
Canaccord Adams Limited along with syndicate members BMO Nesbitt Burns Inc.,
GMP Securities L.P., Orion Securities Inc., Genuity Capital Markets, and
Desjardins Securities Inc. Endeavour Financial received a transaction success
fee of 5,000,000 shares of Peak Gold under its mandate agreement with the
Company's predecessor, GPJ Ventures Ltd.
    Goldcorp has agreed not to sell any of its 155,000,000 shares of Peak
Gold for one year, and thereafter not more than 500,000 in any month unless it
gives the Company a 24 hour notice period to find a buyer for the shares.
Goldcorp will have the right to nominate a director to the Company's board for
so long as it holds not less than 15% of the outstanding shares of Peak Gold.
The Company has entered into a three-year non-competition agreement with
Goldcorp under which it has agreed not to acquire any mineral interest in the
Americas with reasonably expected annual production exceeding 200,000 oz/au or
in any property worldwide that is within 20 kilometres of any Goldcorp
property.
    Peak Gold's board of directors consists of Ian Telfer, Julio Carvalho,
Frank Giustra, and Gordon Keep. Robert Cross is expected to be nominated at
the Company's AGM on May 3, 2007. The senior officers are Julio Carvalho,
Chief Executive Officer, and Jim Simpson, Chief Operating Officer. Pierre
Lassonde is a special advisor to the Board.
    Julio Carvalho has extensive experience in the mining industry and prior
to the formation of Peak Gold Ltd. was Executive Vice President of South and
Central America operations for Goldcorp. He worked for 33 years with the Rio
Tinto group in Brazil, where his primary role was Chief Financial Officer, as
one of three Executive Directors managing four operating companies. Prior to
joining Goldcorp, Mr. Carvalho was President, CEO and Director of Mineraçco
Onça Puma Ltd., a wholly-owned subsidiary of Canico Resources Corp. He is a
Chartered Accountant and holds a MBA from Queens University.
    Jim Simpson was Mine General Manager at Peak Gold Mines and served as a
Director of Goldcorp Asia Pacific Pty Ltd. Mr. Simpson has been acting as Mine
Manager for various mining companies since 1997 including MM Holdings,
Normandy Mining and Goldcorp Inc. Mr. Simpson has over 20 years of experience
in the mining industry and holds a Bachelor of Engineering (Mining) from the
University of New South Wales, Australia.
    In connection with the closing 20,350,000 stock options were granted at
$0.93 for a ten year term to directors, officers, employees, consultants and
charities.
    The Company's Filing Statement describing the transaction in more detail
is filed on SEDAR. www.sedar.com

    Property Description

    Peak Mine, Australia

    The Peak Mine ("PM") and properties are situated in the vicinity of the
Cobar Gold Field approximately 700 kilometres by road northwest of Sydney, New
South Wales, Australia. The Peak properties include a 100% interest in four
consolidated mining leases, a mining lease, a mining purposes lease and four
exploration licences. In addition, Peak Mine has a 75% farm-in agreement on an
exploration license with Zintoba Pty Ltd. and also a 51% farm-in agreement on
an exploration license with Lydail Pty Ltd. The leases and licenses including
those under farm-in agreements cover approximately 855 square kilometres
surrounding the Peak Mine. In 2006 Peak Mine entered into an agreement with
Polymetals Mining Services Pty Ltd for the purchase of the open pittable
resource contained within the confines of the Mount Boppy Mine, located 45
kilometres east of the Peak Mine.
    Most of the production from the Peak Mine is derived from ore mined at
the underground operations which is supplemented by open cut stockpile
material. The production forecast for 2007 is estimated at 119,000 ounces of
gold and 8 million pounds of copper.
    A NI 43-101 technical report has been prepared by Mine and Quarry
Engineering Services, Inc. (MQes) dated March 30, 2007 and is filed on SEDAR.

    Amapari Mine, Brazil

    The Amapari Mine and properties are located in Amapa State in northern
Brazil, approximately 220 kilometres by road northwest of the state capital of
Macapa, a port city on the north bank of the Amazon River estuary. The Amapari
Mine consists of an open-pit and heap leach operation sourcing ore from three
open pits. The Amapari Mine property covers approximately 231,139 hectares in
the Vila Nova group greenstone belt comprising a series of mostly contiguous
claim blocks and a Mining License. The production forecast for 2007 is
estimated at 95,000 ounces of gold.

    
    Reserves and Resources

                  -----------------------------------------------------------
                         PROVEN             PROBABLE       PROVEN & PROBABLE
                  -----------------------------------------------------------
                                Cont-               Cont-               Cont-
                  Tonnage Grade ained Tonnage Grade ained Tonnage Grade ained
                    mt   g Au/t  m oz   mt   g Au/t  m oz    mt  g Au/t  m oz
    --------------
    Peak-gold       0.95   6.70  0.20  0.73    6.82  0.16   1.68   6.75  0.37
    Amapari-gold    0.86   2.50  0.07  5.41    2.45  0.43   6.27   2.45  0.49
                                m lbs               m lbs               m lbs
                    mt    % Cu    Cu    mt    % Cu    Cu     mt   % Cu    Cu
    Peak - Copper   0.95   0.85%  18   0.73   0.62%   10    1.68   0.74%  27
    -------------------------------------------------------------------------


                  -----------------------------------------------------------
                             MEASURED                     INDICATED
                  -----------------------------------------------------------
                   Tonnage    Grade   Contained  Tonnage    Grade   Contained
                      mt     g Au/t      m oz       mt     g Au/t     m oz
    --------------
    Peak-gold        1.24      3.86      0.15      2.28      4.16     0.30
    Amapari-gold     0.29      2.31      0.02      6.70      3.01     0.65
                                        m lbs                        m lbs
                      mt       % Cu       Cu        mt       % Cu      Cu
    Peak-copper      1.24      0.99%      27       2.28      1.19%     60
    -------------------------------------------------------------------------


                  -----------------------------------------------------------
                       MEASURED & INDICATED                INFERRED
                  -----------------------------------------------------------
                   Tonnage    Grade   Contained  Tonnage    Grade   Contained
                      mt     g Au/t      m oz       mt     g Au/t     m oz
    --------------
    Peak-gold        3.52      4.05      0.46      1.99      6.50     0.42
    Amapari-gold     6.98      2.98      0.67      1.92      2.47     0.15
                                        m lbs                        m lbs
                      mt       % Cu       Cu        mt       % Cu      Cu
    Peak-copper      3.52      1.12%      87       1.99      0.53%     23
    -------------------------------------------------------------------------


    Goldcorp Reserve and Resource Reporting Notes:
    1.  All Mineral Reserves and Mineral Resources have been reported in
        accordance with the standards of the Canadian Institute of Mining,
        Metallurgy and Petroleum and National Instrument 43-101.
    2.  All Mineral Resources are reported exclusive of Mineral Reserves.
    3.  Mineral Resources which are not Mineral Reserves do not have
        demonstrated economic viability.
    4.  Reserves and Resources are reported as at December 31, 2006 and
        restated March 30, 2007.
    5.  Qualified Persons for the Mineral Reserve and Mineral Resource
        estimates as defined by the National Instrument 43-101 are as
        follows:
          a. Peak: Eric Strom, P.Eng., Peak Gold Mines
          b. Peak: Rex Berthelsen, MAusIMM, Peak Gold Mines
          c. Amapari: Trevor Jones, MAusIMM, MPBA
    6.  Mineral Reserves are estimated using appropriate recovery rates and
        US$ commodity prices of $450 per ounce of gold, $7 per ounce of
        silver, $1.25 per pound of copper, $0.30 per pound of lead, and $0.60
        per pound of zinc, unless otherwise noted below;
          a. $0.35 / lb lead at Peak
          b. $0.80 / lb zinc at Peak
    7.  Mineral Resources are estimated using appropriate recovery rates and
        US$ commodity prices of $525 per ounce of gold, $8 per ounce of
        silver, $1.50 per pound of copper, $0.43 per pound of lead, and $0.86
        per pound of zinc, unless otherwise noted below;
          a. $0.35 / lb lead at Peak
          b. $0.80 / lb zinc at Peak

        Cautionary Note to United States Investors Concerning Estimates of
        Measured, Indicated and Inferred Resources: These tables use the
        terms "Measured", "Indicated" and "Inferred" Resources. United States
        investors are advised that while such terms are recognized and
        required by Canadian regulations, the United States Securities and
        Exchange Commission does not recognize them. "Inferred Mineral
        Resources" have a great amount of uncertainty as to their existence,
        and as to their economic and legal feasibility. It cannot be assumed
        that all or any part of an Inferred Mineral Resource will ever be
        upgraded to a higher category. Under Canadian rules, estimates of
        Inferred Mineral Resources may not form the basis of feasibility or
        other economic studies. United States investors are cautioned not to
        assume that all or any part of Measured or Indicated Mineral
        Resources will ever be converted into Mineral Reserves. United States
        investors are also cautioned not to assume that all or any part of an
        Inferred Mineral Resource exists, or is economically or legally
        mineable.
    

    Peak Gold wishes to announce that its Board of Directors have approved a
change of the Company's auditors. At the request of the Company, Mintz &
Partners LLP ("Mintz") has resigned as auditor of the Company effective April
2, 2007. The Audit Committee and the Board of Directors of the Company have
appointed Deloitte & Touche LLP ("Deloitte") as the successor auditor in their
place effective April 2, 2007. The Company has sent a Change of Auditor notice
(the "Notice") to each of Mintz and Deloitte and has received a letter from
each addressed to the securities commissions in each of British Columbia,
Alberta and Ontario (the "Commissions") and the TSX stating they agree with
the information contained in the Notice. A copy of each letter from Mintz and
Deloitte addressed to the Commissions and to the TSX will be filed on SEDAR
with a copy of the Notice. There were no disagreements or unresolved issues
with Mintz on any matter of audit scope or procedure, accounting principles or
policies, or financial statement disclosure. It is the Company's opinion that
there have been no reportable events, (as defined in National Instrument
51-102 (Part4.11)) between the Company and Mintz. Mintz did not have any
reservation in their auditors' report for the financial statements for the
Company's last two fiscal years or for any period subsequent to the date the
most recent audit report was issued and preceding the date hereof. Peak Gold
also intends to change its fiscal year end date from November 30 to December
31 to coincide with the year ends of Amapari and Peak Mines.

    Peak Gold is a new intermediate gold producer with an active growth
strategy for 2007. For further information on the Company, please visit our
website at www.peakgold.com.

    On behalf of Peak Gold Ltd.

    "Julio Carvalho"
    President & CEO

    This document contains statements about expected or anticipated future
events and financial results that are forward-looking in nature and as a
result, are subject to certain risks and uncertainties, such as general
economic, market and business conditions, the regulatory process and actions,
technical issues, new legislation, competitive and general economic factors
and conditions, the uncertainties resulting from potential delays or changes
in plans, the occurrence of unexpected events, and the Company's capability to
execute and implement its future plans. Actual results may differ materially
from those projected by management. For such statements, we claim the safe
harbour for forward-looking statements within the meaning of the Private
Securities Legislation Reform Act of 1995.

    The TSX Venture Exchange has not reviewed, and does not accept
    responsibility for the adequacy or accuracy of the content of this news
    release.





For further information:

For further information: Melanie Pilon - VP Investor Relations, Tel:
(604) 696-4100, Toll-free: 1-888-220-2760, Email: info@peakgold.com

Organization Profile

PEAK GOLD LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890