Victoria Announces Guyanese Gold Asset
Monetization
TORONTO, ON, November 13, 2009 - Victoria Gold Corp. (VIT.TSX-V)
(�Victoria� or the �Company�) is pleased to announce, as part of its ongoing non-core gold
asset value optimization program, the sale of the subsidiary of the
Company which holds interests in the Tassawini gold project and the BRL
joint venture exploration properties in Guyana to Takara Resources Inc. (TKK.TSX-V)
(�Takara�). In consideration for the acquisition, Takara shall
issue 21,000,000 shares on a post consolidated basis, resulting in
Victoria holding 56% of the issued and outstanding shares of Takara plus
additional consideration if Takara meets certain exploration or
production milestones.
"This is an ideal outcome for Victoria�, said Chad Williams,
President, CEO, and Dir ector. �Our majority equity participation
in Takara allows us to participate in the upside generated from these
high-potential Guyanese gold projects that will now be managed by a
highly motivated and entrepreneurial company focused on those assets; our
priority continues to be the advancement of our core gold projects: Cove
in Nevada and Eagle in the Yukon."
The Tassawini property and BRL
Venture
The Tassawini property is 100% owned by Victoria Gold (through an
indirectly held subsidiary) and hosts 436,000 Indicated and 61,500
Inferred gold ounces (10,766,600 tonnes at 1.3 g/t and 614,000 tonnes at
1.7 g/t respectively). Tassawini is an advanced- stage gold exploration
property situated in the Barima-Waini District of Northwestern Guyana,
South America. It is located approximately 170 kilometres northwest of
the capital, Georgetown. The property encompasses two contiguous
adjoining Prospecting Licences (the "Tassawini PL" and the
"Anatur i PL") and four Medium Scale Mining Permits
("MSMP's") and has a total area of 9,650 ha.
The BRL Venture is a joint venture between StrataGold Guyana Inc (�SGI�,
an indirectly held subsidiary of Victoria Gold) and Newmont Overseas
Exploration Limited, a subsidiary of Newmont Mining Corporation (NYSE:
NEM) (�Newmont�) with a large strategic land position in Northwest Guyana
within the Arakaka Gold District. As of July 1, 2009, SGI held a
Participating Interest of 31.96% and Newmont held the remaining 68.04%
Participating Interest in the BRL Venture. The district has been
popular with local placer miners for the past 100 years, but until
recently, had not been explored systematically using modern techniques. These
regional exploration efforts originally covered an area of over 4,000
square kilometres resulting in two key projects areas: (1) Monosse and
(2) Projects �A� and �B� (see Victoria News Release dated July 20, 2009),
which host over 25 individual gold expl oration targets. Trenching and
drilling is now underway on projects A and B.
Terms of the deal
Takara will purchase Victoria�s interest in the Tassawini project and
BRL Venture assets along with the requisite subsidiaries. In
consideration for the acquisition, Takara shall issue 21,000,000 shares
on a 3:1 post consolidated basis, resulting in Victoria holding a minimum
56% of the issued and outstanding shares of Takara at closing of the
acquisition. For a period of 5 years following the closing of the
transaction, Victoria shall be entitled to receive up to an additional
4,000,000 shares of Takara or $400,000 at Victoria�s discretion, based on
Takara meeting certain operational or exploration milestones. Victoria
shall be entitled to a pre-emptive right to participate in future equity
financings in Takara in order to maintain a minimum 19%
shareholding. Additionally, Victoria is entitled to appoint up to 2
members to Ta kara�s board of directors. The transaction is
expected to close in early 2010 and is conditional on Takara obtaining
the approval of its shareholders for the proposed transaction, and
certain other customary regulatory approvals. Sale of the assets is
subject to the terms of the BRL Venture Agreement which include meeting
certain conditions of the preemptive right which may or may not be
applicable with respect to the BRL Property.
About Victoria
Victoria Gold Corporation is a high growth gold company with a focus on adding value
per share through efficient exploration, project development, accretive
acquisitions and effective marketing. Maintaining a low risk profile
through project diversification, sound financial management, and
operating in secure jurisdictions are key priorities for Victoria�s management
team.
On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO,
President & Director
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Cautionary
Statement and Forward-Looking Statements
This
press release includes certain statements that may be deemed
"forward-looking statements". All statements in this
discussion, other than statements of historical facts, that address
future exploration drilling, exploration activities and events or
developments that the Company expects, are forward looking statements. Although
the Company believes the expectations expressed in such forward looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those in forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include metal prices, exploration successes,
continued availability of capital and financing, and general economic,
market or business conditions. Accordingly, readers should not place
undue reliance on forward-looking statements.
This
news release and the information contained herein does not constitute
an offer of securities for sale in the United States and securities may
not be offered or sold in the United States absent registration or
exemption from registration.
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.
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