Miranda Gold and Agnico-Eagle Enter into Exploration Alliance in Colombia
Miranda Gold Corp. ('Miranda') (TSX-V: MAD) is pleased
to announce that Miranda and its wholly owned Colombian subsidiary have
signed a non-binding Letter of Intent ('LOI?) to form a strategic
alliance with Agnico-Eagle Mines Limited ('Agnico?) for precious metal
exploration in central Colombia. Under the terms of the LOI, Agnico and
Miranda share 70:30, respectively, in generative exploration
expenditures with exploration activities conducted by Miranda. The
alliance is for a period of three years and is renewable thereafter by
mutual consent. The exploration program budget will be an aggregate
amount of no less than US$1,000,000 per year.
As properties are acquired they will be presented to Agnico. Agnico will
have a 60-day period during which to choose to exercise its option to
designate a formal project (each a 'Designated Property'). Agnico can
earn increasing levels of interest in one or more Designated Properties
through a staged series of qualified exploration and feasibility study
expenditures over a designated time frame to secure up to a 70% interest
in one or more Designated Properties. Once Agnico has earned its final
vesting, a joint venture will be formed and Miranda will be responsible
for its proportionate share of joint venture expenditures.
If Agnico declines to exercise its option to acquire a Designated
Property, then Miranda is free to acquire the presented property at its
own expense with no further obligation to Agnico. The agreement includes
a backstop financing agreement that would be available to Miranda under
certain conditions. Following the signing of the LOI, both parties will
work towards finalizing a definitive agreement.
Miranda is working to build predictive models for Colombia exploration
and has and continues to evaluate several prospects with a staff of
three geologists and support people working out of its Medellin office.
Partnering with Agnico in Colombia will be an effective way for Miranda
to maintain exploration in an exciting frontier area while remaining
true to its joint venture business model.
Within the last several years Colombia has produced a very high rate of
plus-million ounce gold discoveries by a relatively small group of
active companies. The Agnico partnership will allow Miranda to be more
aggressive in Colombia while maintaining an aggressive exploration
program in Nevada.
The results of Miranda′s exploration in Colombia to date include the
acquisition of its Pavo Real gold project in the Tolima Department and
the Cajamarca project in the Antioquia Department both of which are
currently being explored under earn-in option agreements with Red Eagle
Mining Corporation.
Data disclosed in this press release, have been reviewed and verified by
Vice President of Exploration Joseph Hebert, C.P.G., B.Sc. Geology and
Qualified Person as defined by National Instrument 43-101.
Corporate Profile
Miranda Gold Corp. is a gold exploration company active in Nevada,
Alaska, and Colombia and whose emphasis is on generating gold
exploration projects with world-class discovery potential. Miranda
performs its own grass roots exploration and then employs a joint
venture business model on its projects in order to maximize exposure to
discovery while minimizing exploration risk. Miranda has ongoing
partnerships with Agnico-Eagle (USA) Inc., Montezuma Mines Inc., Navaho
Gold Ltd., NuLegacy Corporation, Ramelius Resources Ltd., and Red Eagle
Mining Corporation.
ON BEHALF OF THE BOARD
'Kenneth Cunningham'
Kenneth Cunningham
President and CEO
For more information visit the Company's web site at www.mirandagold.com
or contact Joe Hebert, Vice President, Exploration at 775-738-1877.
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.
U.S. investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our properties. We
advise U.S. investors that the SEC's mining guidelines strictly prohibit
information of this type in documents filed with the SEC.
This news release contains forward-looking statements that are based
on the Company's current expectations and estimates. Forward-looking
statements are frequently characterized by words such as 'plan',
'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate',
'suggest', 'indicate' and other similar words or statements that certain
events or conditions 'may' or 'will' occur. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ materially
from estimated or anticipated events or results implied or expressed in
such forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans to continue
to be refined; possible variations in ore grade or recovery rates;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing; and
fluctuations in metal prices. There may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are
not guarantees of future performance and accordingly undue reliance
should not be put on such statements due to the inherent uncertainty
therein.
Miranda Gold Corp.
Joe Hebert, 775-738-1877
Vice President,
Exploration
