VANCOUVER, April 2, 2012 /PRNewswire/ - Wesgold Minerals
Inc. (TSX-V: WSG) is pleased to announce that it has completed its
acquisition of an initial 11% interest in the Cordoba porphyry
copper-gold property in Colombia
from Minatura International LLC. The purchase price of
$4.03 million was paid by cash
payments totaling $2.03 million to
Minatura, and the forgiveness of the $2.0
million loan provided to Minatura in July 2011. In addition, Minatura has been
issued warrants to purchase up to 5.0 million shares of
Wesgold.
Wesgold now has the option to acquire an
additional 40% interest (for a total of 51%) in the Cordoba
Property by expending $15.0 million
on exploration of the Property and paying to Minatura an additional
$2.0 million within 2.5 years.
$5.0 million of the exploration
expenditures is a firm commitment. The warrants issued to
Minatura are only exercisable once the Company has incurred the
$5.0 million expenditure.
If Wesgold acquires the full 51% interest,
Minatura will have a one-time right to sell its remaining 49%
interest in the Cordoba Property to the Company in consideration
for shares in the Company. The issuance of these shares would
be subject to approval by Wesgold's shareholders.
The Property
The Cordoba Property consists of four granted
mining concession contracts, one pending contract and five
applications for a total of 25,790 hectares located in the
Municipality of Puerto Libertador, in the Department of Cordoba,
about 200 km north of Medellin,
Colombia. The Property covers under-explored marine
volcano-sedimentary rocks and felsic to intermediate intrusives
with multiple artisanal gold miners extracting gold from the broad
based stockwork zones within the Property.
Simon Ridgway,
Chairman of Wesgold, comments, "Following several months of legal
and technical due diligence, Wesgold has forged ahead with the
acquisition of an interest in this large and exciting property
package. Due diligence sampling has confirmed the potential
for the Cordoba Property to host world class porphyry-style
copper-gold deposits. We are now in the process of assembling the
technical team to realize that potential."
Qualified Person
Harmen Keyser,
P.Geol. (NWT), the President of the Company and a Qualified Person
in accordance with NI 43-101, supervised the Company's work program
at the Cordoba Property and is responsible for the accuracy of this
news release.
About Minatura
The Minatura Group is privately held and engaged
in the business of exploration, development and extraction of
precious and base metals in Colombia, South
America and Ghana,
Sierra Leone and Senegal in West
Africa. Minatura holds various hard rock and alluvial
projects in Colombia and
West Africa totaling over 450,000
hectares of mining titles and mining claims. Minatura
is dedicated to achieving a high return for its investors while
adhering to the highest environmental and safety standards in its
projects and creating legacy micro-economies for the communities in
which it operates. Contact info@minatura.com or see
www.minatura.com for more information.
About Wesgold Minerals
Wesgold Minerals Inc. is a Vancouver-based mineral exploration company
focused on the acquisition and exploration of gold and copper
projects in Colombia. Wesgold
recently optioned the Cordoba property, covering 25,790 hectares in
the Department of Cordoba, Colombia, 200 km north of the city of
Medellin.
ON BEHALF OF THE BOARD
"Simon Ridgway"
Simon Ridgway, Chairman of the
Board
Investor relations: Jaclyn
Ruptash, tel: 604-801-5432
Symbol: TSXV-WSG
Shares Issued: 13.1-million
Neither the TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this news release.
SOURCE Wesgold Minerals Inc.