Trading Symbol:TSX: GGD
Shares Issued: 139,918,074
HALIFAX, July 7, 2014 /CNW/ - GoGold Resources Ltd. (TSX: GGD), (GoGold), is pleased to announce that a land agreement to mine and explore on the Ejido property associated with the Santa Gertrudis Gold Mine in Mexico has been executed. The agreement allows GoGold to mine and explore the 2,006 hectares of land that is owned by the local Ejido for a period of ten years with an option to renew for a further five years. With the company's intent to reestablish mining, this agreement will allow GoGold to fast track the Santa Gertrudis gold mine to production.
Terry Coughlan President and CEO stated, "we are extremely pleased that the Ejido are working with us and share the vision of reestablishing production at the Santa Gertrudis mine quickly. With the new resource report released two weeks ago and a PEA study to be completed shortly, we expect shareholders will soon start to see the value GoGold's management and geological team believes is inherent in this historic mine. Our target is to have production commence from Santa Gertrudis as soon as possible in 2015".
The compensation for the agreement is $1,500,000 Mexican pesos (C$123,450 at June 30, 2014 exchange rate) on signing and $500,000 Mexican pesos paid each year on the anniversary date of the agreement. The old waste material from past production on the 2,006 hectares of land will remain with the Ejido.
GoGold recently released a NI-43-101 resource on the property (see Press Release PR#12-2014, June 17, 2014 for details) and is currently working on a Preliminary Economic Assessment ("PEA") anticipated to be completed in the next four to six weeks to support future open pit mining on the property.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the impact of the private placement and debt financing on GoGold and the Parral tailings project, and future plans and objectives of GoGold, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the ability to satisfy all conditions to funding of the second tranche under the credit agreement. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with the GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.
SOURCE: GoGold Resources Inc.
For further information: Terence F. Coughlan, President and CEO, or, Sean Tufford, Vice President, Corporate Development, GoGold Resources Inc., T: 902 482-1998, F: 902 442-1898, Email : [email protected], Or visit : www.gogoldresources.com