Standard Gold Mines Plc
Standard Gold Mines Plc Executes Letter of Intent
Standard Gold Mines PLC / Key word(s): Letter of Intent Standard Gold Mines Plc Executes Letter of Intent March 21, 2011 … Standard Gold Mines Plc listed on the Frankfurt Stock Exchange, under the ticker symbol (H5L.F) today announced that it has recently entered into a Letter of Intent to acquire 100% of Sao Pedro Mining Limited, a UK company which holds the mining rights to a 600 hectare 'open pit' gold mine located in Paracatu, Minas Gerais, in Brazil under a 25 year mining concession. 'Recently, we have been in communications with Mining Finance Limited our mining venture associate and financier which has access to several mining properties globally. These properties may be for sale or available under certain terms and conditions or under a joint venture basis to Standard Gold Mines' indicated Mr. Thele, President. 'The mines are, in many cases, former producers or mines prepared to enter production. Such opportunities are consistent with the company's corporate mandate to aggregate commercially viable precious metal mining assets globally'. 'Currently we are in the stages of conducting our due diligence review of geological, engineering, historical reports and other corporate information necessary to consider an investment of this considerable scope and magnitude', commented Bob Thele. The terms of the possible acquisition under consideration were not disclosed at this time Based on the Technical Appraisal Report generated by Bondar Clegg & Company Ltd. of Vancouver, Canada, a Revalidation Report was prepared by Dr. Edison Pinto Figueira, President and the Responsible Geologist Engineer, of TGA-Trabalhos De Geofisica Aplicada S/C LTDA. and dated on July 9, 2009 in Sao Paulo. As a result of the report, the Brazilian Government approved immediate exploration of the ore body which contained an estimated gold reserve of approximately 300,000 kilos or 10.56 million oz. A Statement Update and Confirmation Report was since prepared and executed, July 15, 2010 in Sao Paulo, which placed a Legal Asset Description of the then prevailing market value of the asset of 300,000 kilos of gold at approximately $12.8 Billion . Current market valuations exceed $14 Billion. 'Investment in the property under consideration is of sufficient size that, if consummated, could accelerate our plans to commence commercial gold production', reported Bob Thele. 'Such activity would also commit the company to access the capital markets for production funding requirements as soon as practicable' Upon completion of the contemplated transaction with Sao Pedro Mining Limited, Standard Gold Mines Plc and Mining Finance Limited have agreed to consider accessing the international capital markets in order to float a bond offering of up to $100 million to finance current production requirements and those of possible additional acquisitions. About Standard Gold Mines: Standard Gold Mines Plc has a mandate to aggregate precious metal mining properties into a portfolio of profitable and commercially viable business assets. The properties sought are both current producing or former producing mines, located in economically favorable and politically stable jurisdictions, with existing attractive mining codes. As a result, funding procurement from capital markets will be focused on precious metals production. Safe Harbor Statement: The statements contained in this Press Release that are not historical may contain forward looking statements that could involve a number of risks and uncertainties. Actual events or results could differ materially from the company's expectations and projections. Contact Us: please visit our website at www.standardgoldmines.com End of Corporate News 23.03.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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