International Gold Resources, Inc. Signs Letter of Intent with UltraGold Holdings LLC, for Gold Exploration Project in Guinea, West Africa
The agreement provides for the Company and UltraGold to jointly explore and earn-in to a 25% interest in the share capital of GoldenFrank Resources Inc. ("GoldenFrank") and an interest of 50% in GoldenFrank's interest in the Balandougou property for a total combined direct and indirect interest of 62% in the property. The Company and UltraGold may earn their interest by funding and conducting up to 15,000 meters of drilling in three phases on the Balandougou property which is located near the Mali border in Northeastern Guinea. The project is in the Siguiri Basin Area which hosts numerous gold mines in Northeastern Guinea and Southwestern Mali, including AngloGold Ashanti's Siguiri mine, located approximately 100 kilometers South of Balandougou, Crew Gold's Lefa mine and Kiniero's SEMAFO mine.
Company Chairman, David H. Francisco commented, "This is a very exciting opportunity for IGR and provides the Company with an advanced, low-cost, exploration project in an area that has the potential for a large gold deposit."
The property is comprised of three contiguous exploration licenses covering approximately 400 square kilometers. There are multiple gold showings and four identified and active artisanal gold mines on the property. Gold on the property is primarily found in quartz veins and free nuggets in the surrounding laterite near contact with mineralized structures. Sampling and reconnaissance work conducted by GoldenFrank and its independent consultant have returned multiple high-grade samples from the artisanal mine areas and have identified seven advanced targets for reconnaissance drilling.
The IGR/UltraGold Agreement
Under the terms of the letter of intent, and subject to definitive documentation and funding, the Company has the right to earn approximately 12.5% of GoldenFrank's share capital and a 25% direct interest in GoldenFrank's property for a combined direct and indirect interest of 31% in the Balandougou.
Company President and CEO, Robert L. Dumont said, "This is a very positive development for us. The UltraGold joint venture will give us direct participation in an ongoing exploration project through two very experienced and well established Guinea-based partners. Our investment will go directly into a drilling campaign and we avoid the significant overhead associated with many start-up exploration projects."
About UltraGold
UltraGold Holdings LLC is a privately held exploration company pursuing gold opportunities in Guinea, West Africa. In addition to the GoldenFrank project, UltraGold is exploring, jointly with Newmont Mining Corporation, one of the world's largest gold companies, a large exploration license block in the Siguiri Basin Area approximately 25 kilometers South of AngloGold Ashanti's Siguiri Mine. UltraGold's managing Director, Guinean Operations, Jean Laprade has over 25 years of international mining industry experience, including 10+ years in Guinea. He has held senior financial and mining operations experience with Alcoa and Ashanti Goldfields. Mr. Laprade is also the Honorary Consul of Canada for Guinea.
About GoldenFrank
GoldenFrank ( www.goldenfrank.com ) is a privately held gold exploration company based in Montreal, Canada pursuing gold opportunities in Guinea, West Africa. GoldenFrank's President and CEO, Maurice Giroux is a professional geologist with more than 30 years of international mining, financing and management experience, including 13 years working in Guinea. He has developed excellent business relations with several West African countries though a long-term geological assignment with the World Bank and has managed exploration and development projects in West Africa for Semafa, Searchgold and Stellar Pacific.
About International Gold Resources:
The vision of International Gold Resources, Inc. is to become recognized as one of the premier early stage mineral exploration companies in the world. In addition to the UltraGold Joint Venture, the Company holds option rights to four gold exploration projects in the Yukon Territories, Canada and continues to work for the issuance of its Cupixi mineral license for its manganese project in Amapa State, Brazil.
This news release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, without limitation, statements regarding the Balandougou property in Guinea; the implication that the Balandougou property's proximity to AngloGold Ashanti's Siguiri mine and other regional mining operations may lead to the discovery of gold deposits; that exploration costs will be low; that the Balandougou project area has the potential for a large gold discovery; statements about the presence of gold and artisanal mining on the Balandougou property; the gold content and grade of samples from the Balandougou. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward looking statements, however, are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from these forward-looking statements. Such factors include, among others: the uncertainty of operating in foreign countries; the volatility of mineral prices; potential operating risks of mining, development, and exploration; environmental and governmental proceedings, regulations, and permits, including the mining license approval process and outcome; changes in applicable laws, regulations, or legal requirements pertaining to the Cupixi Project, the Company, and/or its affiliates; availability of financing; force majeure events; and other risk factors as described from time to time in the Company's filings with the Securities and Exchange Commission. These factors are often beyond the Company's ability to control or predict.
For further information, please contact: Mr. Lyle Durham (Vice President, Investor Relations). 206-601-4499.
International Gold Resources, Inc. Provides Update on its Brazil and Corporate Strategies
In August 2008, IGR announced that it had filed an amendment to the Company's application for approval of its Cupixi mineral license with the Brazilian National Department of Mineral Production (DNPM) that included a complete geologic report addressing the DNPM's initial comments to the Company's 2007 license filing. Following the submission, the Company's President and Chief Executive Officer, Robert L. Dumont spent approximately six weeks in Macapa, Brazil working with the Company's Brazilian legal counsel TozziniFreire Advogados ("Tozzini"), a Sao Paulo-based law firm with expertise in mining applications and licenses in an effort to secure the issuance of the Cupixi license. Despite the filing of the amended license application and the significant efforts of Company management, the DNPM as of yet has not issued the license.
At the same time, the global economic downturn has caused the Company to re-evaluate its corporate and Brazilian strategies.
Mr. Dumont commented, "We have seen a dramatic reduction in base metal, steel and steel input commodity prices as well as available capital for base and ferro metal exploration-stage projects over the past year. We do not think it is prudent at this time to continue to expend significant sums of money on the Cupixi project or other Brazilian mineral assets in the current economic environment. Therefore, we have significantly downsized our Brazilian organization and spend rate in an effort to preserve our limited cash. Our Chairman, David H. Francisco, intends to return to Brazil in mid January as part of our continued effort to seek Brazilian financial partners as well as explore other options to protect and preserve a longer-term option on the Cupixi manganese project in the event that market conditions improve."
Although the Company is re-evaluating the priority of its Cupixi project, the Company continues to advance a strategy for its existing non-Brazilian gold assets as well as look for new opportunities in gold.
Company Chairman, David H. Francisco said, "While the market has changed for base and ferro metals from a year ago, we are still very bullish on gold and believe that long-term fundamentals support higher gold prices. We continue to hold our Yukon options and are in discussions with potential partners to fund additional work on those properties in 2009. We are also looking at new potential opportunities in gold that we hope to be able to communicate in more detail with investors soon."
About International Gold Resources:
The vision of International Gold Resources, Inc. is to become recognized as one of the premier early stage mineral exploration companies in the world.
This news release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include statements that relate to government mining permit approvals, the intention and ability to protect the Company's legal rights to its assets in Brazil, the ability to retain future rights to the Cupixi licenses or identify financial or other partners for the Company's Cupixi or Yukon projects and the ability of the Company to obtain additional opportunities in gold. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the uncertainty of operating in foreign countries; the volatility of mineral prices; potential operating risks of mining, development, and exploration; environmental and governmental proceedings, regulations, and permits, including the mining license approval process and outcome; changes in applicable laws, regulations, or legal requirements pertaining to the Cupixi Project, the Company, and/or its affiliates; availability of financing; force majeure events; and other risk factors as described from time to time in the Company's filings with the Securities and Exchange Commission. These factors are often beyond the Company's ability to control or predict.
For further information, please contact: Mr. Lyle Durham (Vice President, Investor Relations). 206-601-4499
International Gold Resources, Inc. Files Amended Application for Approval of its Cupixi Mineral License
In October, 2007, IGR announced the discovery of a manganese target on its Cupixi exploration claims in Amapa State, Brazil along with the filing of its original mineral license application with the DNPM. During the first half of 2008, in response to comments received from the DNPM, the Company performed additional technical evaluation of the work performed at the Cupixi project prior to the original October 2007 submittal.
The amended application report, prepared by Progem Consultaria e Meio Ambiente Ltda. (Progem), an independent and highly respected geologic consulting firm based in Goiania, Brazil addresses fully the DNPM's comments and further supports the existence of a potentially significant manganese target at Cupixi. The Progem report indicates that the Company's Exploration Claim Block 858.034/2001 in the Cupixi area contains an estimated minimum 26 million tonnes of manganese ore. The estimate is based on a delineated surface area of approximately 2 km by 0.7 km containing several manganese outcrops up to 150 meters in length. The estimate is supported by soil samples, trenches of up to 18 meters, and auger holes. The estimate is not compliant with Securities and Exchange Commission and Canadian NI43-101 standards.
Company President and Chief Executive Officer, Robert L. Dumont commented, "I am extremely pleased with the quality of the work performed by Progem and the efforts of Mike Michels, Vice President, Brazilian Operations and the rest of our Brazilian team to complete this process. I look forward to receiving approval from the DNPM to continue our exploration and development efforts at Cupixi."
At such time as the Company's amended mineral license application is approved by the DNPM, the Company intends to seek additional financing to drill on the property and conduct additional feasibility work on Claim Block 858.034/2001 to further determine the grades, depth, and potential economics of the manganese target. If merited, then the Company will have one year from the date of approval to seek a mining concession. An application for a mining concession must include, among other things, a plan for economic development of the deposit, description of processing and ancillary facilities, proof of financial capacity, and satisfaction of various environmental and other required operating permits.
The Cupixi target also appears to trend to the north-east extending on to the Company's Exploration Claim Block 858.037/2007 to the immediate north of Claim Block 858.034/2001, where the Company had suspended drilling pending the approval of a mining license for Claim Bock 858.034/2001. The Company has five years to work on Claim Block 858.037/2007 before it must submit an application for a mining license, providing further potential for exploration upside at Cupixi.
About International Gold Resources:
The vision of International Gold Resources, Inc. is to become recognized as one of the premier early stage mineral exploration companies in the world.
This news release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include statements that relate to the Company's mining exploration results, government mining permit approvals, estimates of tonnes of manganese ore on the Company's properties, the sufficiency of soil sampling, trenching and auguring to estimate tones of manganese ore, and the intention and ability to conduct additional drilling and feasibility work on the Company's properties. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the uncertainty of operating in foreign countries; the volatility of mineral prices; potential operating risks of mining, development, and exploration; the uncertainty of estimates of mineralized material and deposits; environmental and governmental proceedings, regulations, and permits, including the mining license approval process and outcome; changes in applicable laws, regulations, or legal requirements pertaining to the Cupixi Project, the Company, and/or its affiliates; availability of financing; force majeure events; and other risk factors as described from time to time in the Company's filings with the Securities and Exchange Commission. These factors are often beyond the Company's ability to control or predict.
For further information, please contact: Mr. John S. Gaensbauer (Vice President, Corporate Development): 720-496-4160 and 1-800-480-9008 (U.S. only). Website: http://www.intlgold.com.
International Gold Resources, Inc. closes $1.3 million private placement
The Company raised $1.3 million through a private placement with approximately 3.25 million shares purchased at $0.40 per share coupled with one-half of one warrant to purchase one additional share of common stock at an exercise price of $1.00 at any time during the next 12 months (1,625,000 warrants in aggregate).
Robert L. Dumont, IGR's President and CEO stated, "We will use these funds to sustain operational needs while the Company finalizes and files its amended application for its Cupixi mining license and awaits its approval from the Brazilian Department of Mines. We are very pleased to have Dave participating in this financing and his continued support and enthusiasm for our ongoing efforts."
IGR previously announced the discovery of a manganese target at Cupixi, Amapa State, Brazil, along with the timely filing of its original mining license application with Brazil's National Department of Mineral Production (DNPM). During the first half of 2008, the Company has been performing additional technical evaluation of the work previously performed on the Cupixi project in response to DNPM comments on the Company's original license application. The work is now complete and the report is being finalized for submission.
The Company also reported that it is not a target of the investigations by the Brazilian Federal Police in Amapa State against certain participants in the mining industry there that have recently been reported in the press.
The securities offered in the private placement have not been registered under the Securities Act of 1933 or any state securities laws, and unless so registered may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the shares of common stock or warrants in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About International Gold Resources:
The vision of International Gold Resources Inc. is to become recognized as one of the premier early stage mineral exploration companies in the world.
This news release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include statements that relate to the Company's expectations with regard to the future impact on the Company as a result of this offering, recent mining exploration results, and government mining permit approvals. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the uncertainty of operating in foreign countries; the volatility of mineral prices; potential operating risks of mining, development and exploration; the uncertainty of estimates of mineralized material and deposits; environmental and governmental proceedings and regulations, including the mining license approval process and outcome; availability of financing; force majeure events; and other risk factors as described from time to time in the Company's filings with the Securities and Exchange Commission. These factors are often beyond the Company's ability to control or predict.
For further information, please contact: Mr. John S. Gaensbauer (Vice President, Corporate Development): 720-496-4160 and 1-800-480-9008 (U.S. only). Website: http://www.intlgold.com
International Gold Resources, Inc. Appoints John S. Gaensbauer Vice President, Corporate Development.
Company President and Chief Executive Officer, Robert L. Dumont said, "We are very pleased to have John making an even greater commitment to IGR by agreeing to serve as our Vice President, Corporate Development. John has an extensive background in international mining and natural resources transactions and finance and we look forward to his continued contributions to the advancement or our gold and manganese assets. Through John, IGR will remain associated with Sierra Partners and we expect to continue to benefit from Sierra's broad industry contacts and experience going forward."
Additional Information About Mr. Gaensbauer
Prior to joining Sierra Partners, Mr. Gaensbauer served as Group Executive, Investor Relations for Newmont Mining Corporation, one of the world's largest gold companies, where he was responsible for the development and coordination of Newmont's global investor relations strategy. Prior to that, Mr. Gaensbauer served as in-house counsel to Newmont, managing legal affairs and transactions for Newmont's West African, Central Asian and European operations. Mr. Gaensbauer also served as U.S. in-house counsel for Newmont's Treasury Group and Newmont Capital (now Franco-Nevada Corporation), Newmont's in-house merchant banking unit. In that capacity, Mr. Gaensbauer played key roles in several, significant sales, acquisition, and financing transactions, including serving as co-negotiator (with Sierra's founder, W. Durand "Randy" Eppler) and principle author of Newmont's long-term fiscal stability agreement with the Government of the Republic of Ghana, which was unanimously approved by Ghana's Parliament on December 18, 2003. Prior to joining Newmont, Mr. Gaensbauer practiced corporate and transactional law in the Business and Finance Group of Ballard Spahr Andrews & Ingersoll, LLP. Mr. Gaensbauer holds a Bachelor of Arts degree from Cornell University, a Juris Doctorate from the University of Denver, College of Law, where he graduated Order of St. Ives, and a Masters in Finance from the University of Denver, Daniels College of Business.
About International Gold Resources, Inc.
The vision of International Gold Resources, Inc. is to maximize shareholder value by becoming recognized as one of the premier early stage gold and manganese exploration and development companies in the world.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safeharbor created by such sections. Such forward-looking statements include, without limitation, statements regarding the company's future growth potential and asset portfolio; and statements regarding the Vice President, Corporate Development's education and experience being able to produce future success for the Company. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased exploration and drilling costs; uncertainty in making estimates in mineralized materials and deposits due to variances in ore grade, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this conference call, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
For further information, please contact: Mr. John S. Gaensbauer (Vice President, Corporate Development): 720-496-4160 and 1-800-480-9008 (U.S. only).
Website: http://www.intlgold.com