Desert Gold Announces Sale of its Goldbanks Project
/NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TSX Venture Symbol: DAU
TORONTO, July 11, 2012 /CNW/ - Desert Gold Ventures Inc. (TSX-V: DAU) (the "Company" or "Desert Gold") is pleased to announce that it has entered into an asset purchase agreement (the "Purchase Agreement") to sell the Company's 50% participating interest in the Goldbanks Mining property located in Pershing County, Nevada, USA (the "Goldbanks Project") to Winnemucca Gold Corp., a privately held Canadian company. The Purchase Agreement provides for consideration of $5 million in cash, payable as follows: CAD$1,250,000 on closing, with subsequent payments of $1,250,000 and $2,500,000 to be made on the 6 month and 12 month anniversaries, respectively, of the closing date. In the event that any of the post-closing payments are not made, all legal and beneficial title to the Goldbanks Project will immediately revert to Desert Gold.
This sale will allow the Company to focus its resources and efforts on its core properties in Africa.
About Desert Gold Ventures Inc.
Desert Gold Ventures Inc. is an advanced exploration and development company which holds a portfolio of advanced mineral projects located in Rwanda, Mali and Senegal together with a 50% participating interest in a joint venture agreement with Kinross Goldbanks Mining Company (a subsidiary of Kinross Gold Corporation of Toronto, Ontario) in respect of the Goldbanks Mining property located in Pershing County, Nevada, USA.
This news release has been prepared on behalf of the Board of Directors of Desert Gold, which takes full responsibility for its contents.
FORWARD-LOOKING STATEMENTS AND TECHNICAL DISCLOSURE
This press release includes certain "forward-looking statements". All statements regarding the ability of the Company to successfully complete this transaction 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. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include the inability of the Company to close the transaction. The Company expressly disclaims any obligation to update any forward-looking statements except as may be required by law.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. All dollars in this release are in Canadian funds.
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.
SOURCE Desert Gold Ventures Inc.
Jared Scharf, Chief Financial Officer
Tel. (416) 662-3971
For further information on Desert Gold Ventures Inc. please visit our website at: www.desertgold.ca