Legend Gold Corp. Closes Key Gold Property Acquisition in Republic of Mali, West Africa
TORONTO, ONTARIO -- (Marketwire) -- 10/07/11 -- Legend Gold Corp. (the 'Company' or 'Legend Gold') (TSX VENTURE: LGN) has completed the initial closing of the acquisition of the Mougnina exploration permit in the Republic of Mali, West Africa. In accordance with the property purchase agreement dated August 30, 2011, the Company will pay $500,000 cash and issue 4,000,000 common shares in exchange for a 100% interest in the Mougnina property, subject to a 2% net smelter return royalty to be retained by the vendor. At the initial closing, the Company made an initial cash payment of $250,000. Payment of the balance of the cash price and the issuance of the common shares will be completed when title to the exploration permit has been registered to the satisfaction of Legend Gold. (SEE MAP)
The Mougnina property is an early stage gold exploration property located 8 kilometres from the Syama mine, owned and operated by Resolute Mining Limited. The property consists of an exploration permit that covers approximately 120.5 square kilometers and is underlain by Birimian-age rocks of the Bagoe volcanic-sedimentary belt. The property has been acquired for its potential to host orogenic gold mineralization similar to that of other Birimian-age volcano-sedimentary sequences. Recent reconnaissance exploration work was successful in delineating several gold anomalies that were partially traced to saprolitic bedrock using shallow pits and auger drilling. As part of its technical due diligence review, the Company commissioned an independent technical report by SRK Consulting (Canada) Inc. ('SRK'). In its technical report dated September 30, 2011 (the 'SRK Technical Report'), SRK concludes that the Mougnina property is a gold exploration property of merit warranting additional exploration investments. SRK has recommended a two-phase exploration program for the Mougnina property, comprised of an airborne geophysical survey with an estimated cost of Cdn $575,000, to be followed by a second phase of rotary air blast, reverse circulation and core drilling, at an estimated cost of Cdn $3.5 million. The SRK Technical Report will be filed on SEDAR and will be available on the Company's website.
Scott Waldie, Legend Gold's President and CEO, said, 'This acquisition now adds a third, 100% owned, flagship property to Legend's exploration portfolio. Our growing list of exploration projects in Mali gives Legend the most prospective exploration exposure in West Africa, one of the fastest growing regions of gold discovery and production in the world.'
The Mougnina acquisition is consistent with Legend Gold's strategy of increasing shareholder value by acquiring highly prospective, well located gold properties in Mali. With an established presence in Mali, and extensive exploration experience in West Africa, Legend Gold looks forward to exploring Mougnina's extensive gold anomalies. For further details please see Legend Gold press releases dated June 28 and September 1, 2011.
About The Company
Legend Gold is a mineral exploration and development company focused on exploring for gold in the Republic Of Mali, West Africa. Our five main projects are now the Tiekoumala, Lakanfla, Mougnina, Diokeba, and Dalakan projects. In recent years, we have made significant gold discoveries on the Tiekoumala project located in Southern Mali, and the Lakanfla project located in Western Mali. Legend Gold has 65,431,324 common shares issued and outstanding (79,281,324 shares on a fully diluted basis). Please visit our website www.legendgold.com to for more information about our projects.
Qualified Person
The technical information in this news release has been reviewed by Mr. Ashley Brown of SRK, P. Geo. (APGO#1683) an independent qualified person for purposes of National Instrument 43-101, and the author of the SRK Technical Report.
This news release may contain forward-looking statements that are based Legend Gold Corp.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
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.
Contacts:
Legend Gold Corp.
Scott Waldie
President & CEO
416.703.6348
swaldie@legendgold.com
