TORONTO, Oct. 16 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX: VTR) announced today that it has signed a Definitive Agreement with Randgold Resources Limited ("Randgold") to purchase a 100% interest in the Kiaka Gold Project in Burkina Faso, subject to a free participating right of 10%, up to a full feasibility study (held by a local Burkinabe company), for a combination of cash and shares of Volta (Please see Volta press release dated September 8, 2009).
The purchase price will consist of cash consideration of CDN$4,000,000 and 20,000,000 common shares of Volta. The aggregate consideration shall be paid and issued, as applicable, over a period of 24 months following the date of closing of the Acquisition as follows: (a) 13,300,000 common shares on the Closing Date; (b) $1,000,000 cash on the date that is 6 months following Closing Date; and (c) $1,000,000 cash and 2,233,333 common shares on the dates that are 12, 18 and 24 months following the Closing Date. Each of Volta and Randgold has the option to elect to accelerate the issuance of the consideration shares such that all of such shares are issued upon closing. All shares that are to be delivered on closing shall be placed in escrow pending proof of recordation of the licence comprising the Kiaka Gold Project into Volta's name.
The transaction is conditional upon approval by Volta shareholders and receipt of third party consents and regulatory approvals including the approval of the Toronto Stock Exchange. Volta has set the date for its Special Meeting of Shareholders for November 13, 2009.
Volta is a mineral exploration company primarily focused on becoming a leader in the identification, acquisition and exploration of gold properties in West Africa. The Company is committed to West African exploration and is Canadian-based with its head office in Toronto, Ontario and operations offices in Accra, Ghana and Ouagadougou, Burkina Faso.
Forward Looking Information Caution:
This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Volta to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Volta believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Volta Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
SOURCE Volta Resources Inc.
For further information: For further information: please refer to our website www.Voltaresources.com or contact: Kevin Bullock, P.Eng., President & CEO, Tel: (647) 388-1842, Fax: (416) 867-2298, Email: email@example.com