|By Marketwired .||
|December 6, 2013 03:02 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/06/13 -- True Gold Mining Inc. (TSX VENTURE: TGM) ("True Gold" or the "Company") is pleased to announce that the Company has exercised its option to acquire the remaining 10% interest (the "Interest") in the Goulagou and Rounga permits (the "Permits"), two of the six permits comprising the Karma Gold Project ("Karma Project") in Burkina Faso, West Africa.
Pursuant to the original terms, the option was exercisable for consideration of US$1 million and a 5% net profits interest but not until the commencement of commercial production. True Gold has negotiated the early exercise of its option to purchase the Interest for consideration consisting of US$500,000, the issue of 1,773,500 common shares (the "Consideration Shares") of True Gold, and a 5% net profits interest on the Permits.
"Today's agreement simplifies the Company's corporate structure as we advance the Karma Project," said Dwayne Melrose, President and CEO, True Gold.
The 856-square-kilometre Karma Project includes five closely spaced deposits - Kao, Goulagou I, Goulagou II, Rambo and Nami. The Goulagou I and II deposits are within the Goulagou permit boundary. True Gold has applied for exploitation (mining) permits on four of the five Karma Project deposits, including Goulagou I and II.
The Rounga permit, in the northern portion of the Karma Project, offers many highly prospective priority drill targets including Watinoma, where True Gold drilling intersected 1.91 g/t Au over 70.5 metres in August 20131.
The Karma Project is currently undergoing a feasibility study, which entails the development of a fully engineered construction and operating plan for a proposed low cap-ex, open-pit, heap-leach mine2.
The acquisition of the Interest is subject to regulatory approval. No finder's fees or commissions will be paid by the Company in connection with the acquisition of the Interest. The Consideration Shares will be subject to a four-month hold period from the date of issue.
1Please see True Gold news release dated August 20, 2013
2The Company has not made a production decision and the Company's strategic plan to develop a stand-alone heap leach operation at the Karma Project is subject to the results of a feasibility study, which is currently underway. Further, if and when the Company makes any production decision, it will disclose the basis of such decision in accordance with the requirements of NI 43-101
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a profitable gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.
ON BEHALF OF THE BOARD
Dwayne Melrose, President & CEO
Neither the TSX Venture Exchange 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.
Certain statements made and information contained in this news release constitutes "forward-looking information" within the meaning of Canadian securities legislation. All statements in this release, other than statements of historical facts, including the expected completion of the Interest acquisition and receipt of the approval of the TSX Venture Exchange, are forward looking statements. Although the Company 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, a delay or failure to obtain necessary regulatory approvals for the acquisition of the Interest, unsuccessful exploration results, accidents or equipment breakdowns, the risk of undiscovered title defects or problems with surface access, labour disputes, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk, unanticipated changes in key management personnel and general economic, market or business conditions. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects, the assumptions in this news release and in the Company's news release dated Aug. 20, 2013. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.