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Press Release |
June 16, 2010 |
CANADA GOLD CORPORATE UPDATE
Vancouver, British Columbia, Canada - June 16, 2010 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9N, OTC-BB: CNGZF) ("Canada Gold" or the "Company") has passed all resolutions at the Company's AGM, welcomes Mr. Al Fabbro to the Board of Directors and cancels its arrangement with the Grafton Resources Investment Fund ("Grafton").
Mr. Fabbro has over 30 years experience in both the finance and mining industries. From 1984 to 1990, Mr. Fabbro headed the retail trading department of Yorkton Securities, followed by six years with Yorkton's Natural Resources Group. Most recently and for the past ten years, Mr. Fabbro was an investment advisor with Canaccord Capital, specializing in the natural resource sector. He recently left Canaccord Capital to pursue opportunities in the public sector. He joins Ian Klassen and Harold Forzley on the Audit and Compensation committees. Dave McMillan was appointed President and CEO and Marc Tran as Secretary of the Company.
With respect to Canada Gold's Peruvian Subsidiary, Canadian Ore Processors ("COP"), 50% owned by Canada Gold and 50% owned by Grafton, Canada Gold and Grafton have agreed to consolidate the ownership of COP into Canada Gold. This will entail an unwinding of the transaction of 2009 in which Grafton issued approximately 231,000 shares of its fund for a 50% interest in COP. Canada Gold will return these shares to Grafton in exchange for the 50% shares held by Grafton in COP. Grafton will also forgive an outstanding loan of $200,000 to COP as a condition of this transaction. This "unwinding" was precipitated by Canada Gold's previously announced intention to reduce overall activities in northern Peru and due to the inability of Canada Gold to monetize the value of the Grafton shares.
ABOUT CANADA GOLD
Canada Gold has been formed for the express purpose of developing mineral processing facilities in independent small scale and artisanal mining communities. By providing local miners with access to advanced ore processing techniques, the Company's mineral processing model seeks to assist these mining communities in establishing sustainable socio-economic standards by encouraging entrepreneurship, curtailing health and safety risks, improving access to education and equipment, reducing environmental degradation, and minimizing the pressures contributing to child labor.
The Canada Gold facilities will provide alternative processing options to small unregulated mercury amalgamation techniques and the associated health and environmental impacts accruing from these small scale processing activities.
ABOUT SMALL SCALE MINING
Much of the developing world possesses significant informal artisanal small scale mining communities, often characterized by low health, safety and environmental standards, but also significant social and economic influence. The organization of Communities and Small Scale Mining ("CASM") suggests between 13 and 20 million men, women and children from over 50 developing countries are active in small scale activities, with 100 million more dependent on this sector for their livelihood.
Neither 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.
On behalf of the Board,
Dave McMillan
President & CEO
Chad McMillan B.A. (Cmns)
Vice President, Corporate Communications
C:+1.778.668.6980
P:+1.604.685.5851
F:+1.604.685.7349
Canada Gold Corporation
520-700 West Pender Street
Vancouver BC, Canada
V6C 1G8
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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. |