Legend Gold Corp. Acquires Key Gold Property in Republic of Mali, West Africa
TORONTO, ONTARIO -- (Marketwire) -- 09/01/11 -- Legend Gold Corp. (the 'Company' or 'Legend Gold') (TSX VENTURE: LGN) announces that the Company has signed a definitive agreement to acquire the Mougnina exploration project ('Mougnina') in Southern Mali, on the terms outlined in the Company's news release dated June 28, 2011.
Scott Waldie, Legend Gold's President and CEO, said, 'The acquisition of the Mougnina exploration project will add a third, 100% owned, flagship property to Legend's exploration portfolio. Mougnina's western boundary is situated only 8 kilometres along strike from Resolute Mining Ltd.'s ('Resolute') Syama gold mine and only 5 kilometres from their exciting new gold discovery at the A21 oxide deposit. Resolute has also announced new oxide gold discoveries northeast of the Syama pit (between the pit and A21) at the Alpha and the Syama Extension discoveries. Our growing list of exploration projects in Mali gives Legend the most prospective exploration exposure in West Africa, one of the fastest growing regions of gold discovery and production in the world.'
To view a map of the '3 Flagship Projects', please click on the following link: http://media3.marketwire.com/docs/Ex1.JPG
Mougnina will be acquired from AGMEX SARL ('Agmex'), a company controlled by Ambogo Guindo, a director and officer of the Company. The terms of the agreement provide for the Company to pay an aggregate of Cdn $550,000 cash and issue 4,000,000 common shares of the Company to Agmex in exchange for a 100% interest in Mougnina. Agmex would retain a 2% net smelter return royalty, which royalty would be subject to a buy-back right in favour of the Company. The proposed acquisition is a related party transaction for purposes of National Instrument 61-101 of the Canadian Securities Administrators ('NI 61-101'). The transaction is exempt from the formal valuation and minority approval requirements of NI 61-101, as the value of the transaction is less than 25% of the Company's market capitalization.
To view a map of the 'Mougnina Anomalies and Syama Gold Mine', please click on the following link: http://media3.marketwire.com/docs/Ex2.JPG
Completion of the transaction is conditional upon receipt of all necessary regulatory approvals.
The Mougnina project has several existing bedrock gold anomalies that now require detailed exploration programs. Agmex has developed eight specific gold targets from a combination of soil geochemistry, termite mound sampling, pitting, and auger drilling.
Based on observations of ancient artisan mining sites, remote sensing data, and the extensive nature of the Mougnina anomalies, it is considered that Mougnina is located along strike from, and hosts parallel zones of, the lithotectonic units that host the Syama mine. Mougnina has the potential to provide very exciting exploration results.
Located on Mougnina's western boundary, the Syama Mine was brought into production in 1990 by BHP Billiton ('BHP') and produced over 1.5 million ounces of gold under BHP's ownership. Resolute purchased the mine in 2004 and officially recommenced production in May, 2010. 2010 production was reported by Resolute as being 77,926 ounces of gold at a head grade of 2.69 grams per tonne. Head grades for 2011 are expected to approach 3.2 grams per tonne. Resolute has recently acquired the N'Golopene property, which closed a small gap between Mougnina's western boundary and the Syama property, and the Borokoba property on the eastern boundary of Mougnina and has also applied for other nearby concessions.
To view a map of the 'Mougnina Region Simplified Geology', please click on the following link: http://media3.marketwire.com/docs/Ex3.JPG
The Mougnina acquisition is consistent with Legend Gold's strategy of increasing shareholder value by acquiring highly prospective, well located gold properties in Mali. With an established presence in Mali, and extensive exploration experience in West Africa, Legend Gold looks forward to exploring Mougnina's extensive gold properties.
About The Company
Legend Gold is a mineral exploration and development company focused on exploring for gold in the Republic Of Mali, West Africa. Our four main projects are the Tiekoumala, Lakanfla, Diokeba, and Dalakan projects. In recent years, we have made significant gold discoveries on the Tiekoumala project located in Southern Mali, and the Lakanfla project located in Western Mali. Legend Gold has 65,431,324 common shares issued and outstanding (86,521,324 shares on a fully diluted basis). Please visit our website www.legendgold.com to for more information about our projects.
This news release may contain forward-looking statements that are based Legend Gold Corp.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
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.
Contacts:
Legend Gold Corp.
Scott Waldie
President & CEO
416.703.6348
swaldie@legendgold.com
www.legendgold.com
Renmark Financial Communications Inc.
Barry Mire
514.939.3989 or 416.644.2020
bmire@renmarkfinancial.com
Renmark Financial Communications Inc.
Matthew Planche
514.939.3989 or 416.644.2020
mplanche@renmarkfinancial.com