VANCOUVER, Nov. 19 /CNW/ - Golden Peaks Resources Ltd. (TSX: GL) (the "Company") announces that it has finalized an amending agreement on the La Fortuna property.
The La Fortuna gold project (approximately 8,000 hectares) is located in the Province of Chubut, Argentina, 1,300 km south of Buenos Aires. The project covers a large, newly discovered, mineral district. Three gold deposits have been discovered to-date - the T-11, G and Amphitheatre - all in the northern part of the district.
Since December 2003 the Company has held an option to earn a 100% interest in this property by making staged option payments. To date the Company has funded work programs of over US $13 million dollars. Under the terms of the initial option agreement the Company was required to make option payment of US $1 per each economically recoverable ounce of gold to a maximum option payment of US $5.3 million dollars. Pursuant to the terms of the option agreement, title to the property was to be transferred in early 2009 and the Company had been taking steps to have title transferred.
The Company has now concluded an amending agreement which establishes dates for further option payments and title to the property. The agreed upon revised option payment schedule will be US $300,000 on signing, US $1,000,000 on the first anniversary, US $1,000,000 on the second anniversary and US $1,000,000 on the third anniversary, US $1,350,000 on the fourth anniversary, US $1,350,000 on the fifth anniversary, for a total of US $6 million dollars. There will be no other further payments or royalties, title to the property is being transferred immediately.
The previously announced drill program will start immediately. This drill program is designed to test for high grade gold-bearing quartz vein systems/breccias underlying or flanking the T-11 and G deposits, and to expand these deposits. It is anticipated that the results of the upcoming diamond drill program will be incorporated into the NI 43-101 compliant resource estimate currently contracted to Snowden Mining Industry Consultants of Vancouver. The Company is in receipt of all necessary drilling and environmental permits.
The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.
SOURCE GOLDEN PEAKS RESOURCES LTD.
For further information: For further information: Media Information, contact: Scott Emerson, Chairman and Director, SE@goldenpeaks.com; Investor Information, contact: Mike Kordysz, Investor Communications, MK@goldenpeaks.com