Laurentian Goldfields Ltd. (TSX-V: LGF) ("Laurentian") is pleased to announce a $5.8 million, 3 year strategic exploration alliance (the "Alliance") with AngloGold Ashanti Ltd. ("AngloGold"), which includes a subscription by AngloGold to a $400,000 private placement in Laurentian.
Chris Lodder, Greenfields Exploration Manager: Americas, of AngloGold states, "AngloGold has chosen to work with Laurentian in several new frontier areas of Canada because of the team's ability to design, implement and conduct exploration in an innovative and efficient manner, which generates new Greenfields drill projects rapidly."
The terms of the Alliance agreement (the "Agreement"), subject to TSX Venture Exchange (TSX-V) approval, are as follows:
In Year One of the Agreement, AngloGold will fund a total of $700,000 in exploration including at least $500,000 for generative exploration efforts in five selected areas in Quebec, Ontario and Saskatchewan, with the objective of identifying new grassroots gold exploration projects, and up to $200,000 for upgrading targets within portions of Laurentian's existing Grenville Project. The Grenville Project is an early-stage exploration property in Quebec, modeled after AngloGold's Tropicana Deposit, in Western Australia.
In Year Two and Three of the Agreement, at AngloGold's option, AngloGold may fund additional exploration totalling $4,700,000 (Year Two -- $1,700,000, Year Three - $3,000,000) to follow up on Year One project results. Upon spending $5,400,000 in exploration over three years (the "Earn-In Period"), AngloGold will earn a 60% interest in each exploration project defined under the Alliance and Laurentian will retain a 40% interest. AngloGold, at its option, may then increase its interest to 75% in any exploration project by fully funding any ongoing exploration through to the completion of a National Instrument 43-101 compliant, inferred gold resource, within three years of completion of the Earn-In Period. Any assets acquired during the Earn-In Period that do not progress to a joint venture will revert 100% to Laurentian.
AngloGold will purchase, via non-brokered private placement, $400,000 in Laurentian units (the "Units"). The price per Unit, subject to minimum pricing as required by the TSX-V, is to be determined by taking the greater of: the volume weighted average trading price of the common shares of Laurentian over the thirty days ending three business days prior to April 29, 2009 and $0.07 per Unit. Each Unit will consist of one fully paid common share and one full warrant, exercisable at a price equal to double the stock price, as determined above, for a period of two years.
Under the terms of the Agreement, Laurentian agrees to invest $100,000 of the proceeds from the private placement into Year One exploration. Laurentian intends to use the remaining proceeds to fund general corporate purposes. The securities will be subject to restrictions on transfer for a period of four months from closing.
Andrew Brown, President and Chief Executive Officer of Laurentian, states, "We are very pleased to be partnered with AngloGold, a major gold producer with a proven track record of finding ounces through the funding of grass roots exploration projects. This alliance is a strong endorsement of Laurentian's exploration team and technical skills and it significantly increases Laurentian shareholders' exposure to the possibility of new discoveries."
About Laurentian Goldfields Ltd.
Laurentian is a team of highly skilled exploration professionals focused on discovery and growth in under-explored regions of mining-friendly jurisdictions. Laurentian generates new projects by employing leading edge exploration concepts and techniques to quickly and cost-effectively screen vast tracts of land for geological and geochemical signatures known to be associated with world class gold deposits.
ON BEHALF OF THE BOARD OF DIRECTORS,
Andrew Brown, M.Sc., P.Geo.
President and CEO
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.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future payments, unit issuances, expenditures and use of proceeds and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of future payments, unit issuances and expenditures and the timing and success of future exploration, development and production activities.
For further information, please contact:
Andrew Brown, President and CEO
Tel: (604) 646-1596
Fax: (604) 642-2411