OAKVILLE, ON, June 16, 2014 /CNW/ - Giyani Gold Corp. (TSXV: WDG, JSE: GIY, NSX: GGC) ("Giyani Gold") is pleased to announce that it is in exclusive negotiations with a private international energy company (the "EnergyCo") with multiple projects in attractive jurisdictions including an operating asset in South Africa. The period of exclusivity will last until the execution of a definitive agreement or July 30, 2014, whichever is earlier. These exclusive negotiations are an initial step towards the proposed transaction between Giyani Gold and EnergyCo.
"Giyani Gold is focused on acquiring significant assets to strengthen our company and reward our shareholders. We have built a strong relationship with EnergyCo and now that we're in a period of mutually desired exclusive negotiations, we will move quickly to finalize a binding definitive agreement." stated Duane Parnham, Executive Chairman of Giyani Gold. "The portfolio of assets held by EnergyCo includes cash-flow generating operations, and projects with significant development potential that will be best advanced by combining the management and technical teams of Giyani Gold and EnergyCo."
Giyani Gold has engaged Bertan Atalay, an energy professional with over 25 years of experience in mid-stream oil & gas asset development and financing, as an independent consultant. Mr. Atalay has significant knowledge and experience with respect to the EnergyCo assets and his primary area of focus with Giyani Gold will be working on the proposed transaction between Giyani Gold and EnergyCo.
Under the terms of the agreement relating to the exclusive negotiations, Giyani Gold has agreed to provide EnergyCo all relevant information relating to Giyani Gold and the Giyani Gold Project in South Africa. In addition, EnergyCo has agreed to provide Giyani Gold with access to all information relevant to the EnergyCo projects and has organized site visits for Giyani Gold executives.
The complete terms and conditions for the potential definitive agreement are still being negotiated and there is no assurance that a definitive agreement will be successfully concluded. The final terms and conditions of the definitive agreement are subject to the approval of the Boards of Directors of Giyani Gold and EnergyCo and any proposed transaction would be subject to the receipt of all required regulatory and shareholder approvals.
Giyani Gold does not intend to make any further announcements or communications regarding this potential transaction until either a definitive agreement has been reached or discussions are terminated without such an agreement being reached.
Neither the TSX Venture Exchange Inc. 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.
On behalf of the Board of Directors of Giyani Gold Corp.
(signed) "Duane Parnham"
Duane Parnham, Executive Chairman
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Giyani Gold believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Giyani Gold's management on the date the statements are made. Except as required by law, Giyani Gold undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE: Giyani Gold Corp.
For further information: Investor Contact, Luke Vigeant, Head of Communications, Giyani Gold Corp., Tel: 1.905.844.1456 X237, Email: [email protected]