Gondwana Gold Inc. to Sell African Gold Exploration Properties in Burkina Faso
TORONTO, April 3, 2013 /CNW/ – Gondwana Gold Inc. (TSXV:PAO) (the “Corporation“) today announced that it has entered into a definitive share purchase
agreement (the “Agreement“) pursuant to which Kanosak Capital Venture Corporation (TSXV:KKV) (“Kanosak“) will acquire all of the outstanding shares of the Corporation’s
subsidiary LMZ Gold Burkina SARL (the “Transaction“). LMZ Gold Burkina SARL owns 100% of the exploration and mining rights
for three properties in Burkina Faso, known as the Gabou, Dianvour and
Ouaraba properties (the “Properties“).
As consideration for the Transaction, Kanosak will issue 2,000,000
common shares on closing of the Transaction, and 3,000,000 additional
common shares upon reaching each of the following two milestones: upon
the release of a mineral resource estimate evidencing a minimum of
1,000,000 ounces of gold on the Properties and upon the preparation of
a bankable feasibility study on the Properties.
Between the date of signing the Agreement and the closing of the
Transaction, Kanosak will be the operator of the Properties and will be
responsible for all related costs. Such costs are non-refundable in
case of non-completion of the Transaction.
The completion of the Transaction is subject to customary closing
conditions including Kanosak’s completion of satisfactory due diligence
as well as the receipt of the necessary regulatory and TSX Venture
Exchange approvals. The Transaction is expected to close in June 2013.
Certain statements contained in this release constitute forward-looking
information. These statements relate to future events or the
Corporation’s future performance. The use of any of the words “could”,
“expect”, “believe”, “will”, “projected”, “estimated” and similar
expressions and statements relating to matters that are not historical
facts are intended to identify forward-looking information and are
based on the Corporation’s current belief or assumptions as to the
outcome and timing of such future events. Actual future results may
differ materially. In particular, the Corporation’s stated expectation
as to the completion of the Transaction is a statement containing
forward-looking information. Actual results and developments may
differ materially from those contemplated by this forward-looking
information depending on, among other things, the risks that the
parties will not proceed with the Transaction, that the ultimate terms
of the Transaction will differ from those that are currently
contemplated and that the Transaction will not be successfully
completed for any reason (including the failure to satisfy or waive all
of the conditions of completion of the Transaction). The Corporation
disclaims any intention or obligation to publicly update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as may be expressly required by
applicable securities laws.
The TSX Venture Exchange has in no way passed upon the merits of the
Transaction and has neither approved nor disapproved the contents of
this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Gondwana Gold Inc.