D'Aguilar Gold Limited (ASX:DGR) are pleased to provide the following update to the market regarding the Group's activities.
Execution of Agreement for Scrip-based Take-over of Ridge Exploration By Coltstar Ventures Inc D'Aguilar and its 86% owned iron and titanium focused subsidiary, Ridge Exploration Pty Ltd (Ridge) are pleased to advise that all parties have now executed the Share Purchase Agreement for the scrip based take-over of Ridge Exploration by TSX.V-listed Canadian company Coltstar Ventures Inc (CVE:CTR).
Under the Share Purchase Agreement, Coltstar will acquire 100% of the issued shares of Ridge, in consideration for the issue of 10 million new, fully-paid shares in Coltstar to the Ridge shareholders.
D'Aguilar will appoint a Director to the Coltstar Board, and will continue to provide managerial and administrative support to Ridge on commercial terms. The parties are currently expediting the appointment of a Chief Operating Officer for Ridge to lead the further exploration and metallurgical programs.
D'Aguilar and Coltstar are now progressing through the due diligence and regulatory approval stage of the transaction, and D'Aguilar will advise the market on the completion of each of these milestones.
Ridge holds exploration licences and other rights for iron ore and titanium over parts of the northern Surat Basin, the underlying basement and other areas where previous work has identified iron ore development with over 40% iron content in lateritised profiles. While over the past 40 years the mining industry has concentrated on the exploitation of haematite ores grading better than 55% iron, it has been overlooked that for most of the history of the iron and steel industry (many centuries), iron ore grading 35+% was the accepted standard. Ridge's target areas are situated adjacent to massive coal and gas reserves (owned by unrelated third parties) and given the current high prices for iron ore, Ridge believes that iron ore in the Surat prospect area should be able to be profitably exploited even bearing costs of upgrading and processing.
Initial field work has already identified extensive deposits of sediment hosted iron ore with many assays >40% Fe. The largest and strongest iron deposit identified lies in the Johnson Creek area on the eastern edge of the Basin approximately 100km southwest of Mundubbera and 80km east of Wandoan, referred to as Cadarga. Mapping and sampling work at Cadarga has also led to the discovery of high grade Titanium Dioxides (up to 31% TiO2) around an interpreted basaltic volcanic centre near the town of Monogorilby. The deposit is flat lying within a lateritised volcanic breccia and covers about 6 square kilometres around a diatreme style of volcanic vent. Ridge is investigating the potential for the discovery and development of a large-scale TiO2 project in the area.
Coltstar Ventures Inc was established in 2006 and is based in Vancouver, Canada. Coltstar is a Tier 2 TSX Venture Exchange listed company headed by CEO Damien Reynolds.
As part of its focus on world-class iron-ore projects, Coltstar has recently announced the staking of a 958km2 tenement area contiguous with Chevron Canada Limited's Crest iron deposit which is loacted within a 600km2 area straddling the Yukon - Northwest Territories border in Northern Canada.
Through its subsidiary, Tuscany Minerals (OTC:TUSMF), Coltstar is also focused on the acquisition, exploration, and development of gold properties in Italy. Its principal property includes the Colline Metallifera gold property, which consists of six exploration permits located in Tuscany, Italy covering a large Carlin style gold system.
Coltstar recently announced that a silt sampling campaign has expanded a large, gold-in-silt anomaly on its Torniella Property in central Italy. This anomaly exhibits very high gold values (greater than 1,000 ppb) in a setting similar to that of high-sulphidation gold mines in Latin America, such as Pierina, Yanacocha, Pasqua-Lama and Fruta-del-Norte. The Torniella exploration permit, covering a surface area of 2,130 hectares, is located 110 kilometres north-west of Rome in an area which hosts significant mining activity.
D'Aguilar's Investment Portfolio
Following completion of this transaction, D'Aguilar will hold approximately 8.6 million shares in Coltstar, valuing the investment at approximately A$8.0 million dollars based on the current Coltstar price of CDN$0.85.
This investment will also join D'Aguilar's other existing listed resource company investments in Burkina Faso gold explorer Mt Isa Metals (ASX:MET) (A$9.5 million, based on 50 million shares at A$0.19) and Solomon Island and Queensland gold explorer Solomon Gold plc (LON:SOLG) (A$3.2 million, based on 35.2 million shares at GBP0.053).
Accordingly, D'Aguilar will soon have asset backing in the form of international exchange-listed investments in excess of A$20 million based on current prices.
D'Aguilar's Corporate Pipeline
In addition to the investments outlined above, D'Aguilar is currently finalising its plans for the impending IPO of AusNiCo Limited, in which it will retain a significant investment. The IPO value of this retained holding will approximate A$13 million. D'Aguilar will have two representatives on the Board of AusNiCo, including the Chairman.
D'Aguilar has also commenced work on the Q4 2010 IPO of gold explorer, Navaho Gold, in which it will also retain a significant holding after the float, together with two Board representatives including the Chairman. Navaho Gold is headed by ex-BHP (ASX:BHP) (NYSE:BHP) exploration management chief Mark Dugmore, and is currently assembling a highly-prospective gold portfolio within the 200m oz Carlin / Battle Mountain / Eureka trends in Nevada USA, and the Northern Bowen Basin and Texas Block in Queensland, Australia.
In addition, D'Aguilar is currently assembling large-scale unconventional gas exploration assets in an energy-focussed subsidiary. Mr Phil McNamara has recently been appointed as the CEO of this company, and will oversee the seed capital raising and IPO raising and ASX listing process. Mr McNamara was formerly Managing Director of Waratah Coal and a Director of Mr Clive Palmer's Resource House. He has a long and successful history in large-scale resource projects and infrastructure development planning and approval progression.
D'Aguilar's subsidiary, Barlyne Mining will soon commence drill testing of outcropping extensive copper gold molybdenum porphyry mineralisation in the Great Blackall area north of and adjoining Aussie Q Resources Limited's (ASX:AQR) Whitewash and Kiwi Carpet project areas.
About D'Aguilar Gold Limited:
Emerging gold-base metals explorer-developer, D'Aguilar offers exciting exposure to resource-project generation and discovery across a range of commodities, including copper, gold, nickel, molybdenum and uranium. D'Aguilar focuses especially on delivering value through the discovery of orebodies by the application of innovative exploration and reassessment strategies to existing pre-development projects and to new greenfields areas.
Mr Nicholas Mather Managing Director Karl Schlobohm Company Secretary D'Aguilar Gold Ltd Ph: +61-7-3303-0680
D'Aguilar Gold Limited
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