Mr. Peter Berdusco reports
GUYANA GOLDSTRIKE ANNOUNCES C$3.2 MILLION STRATEGIC INVESTMENT FROM ZIJIN GLOBAL FUND AND ZIJIN MIDAS EXPLORATION FUND LLC
Guyana Goldstrike Inc.
has arranged a strategic investment with Gold Mountains Asset Management Ltd. The investment will be completed by Zijin Global Fund and Zijin Midas Exploration Fund LLC, both managed by GMA.
Zijin is a publicly listed company that trades on the Shanghai and Hong Kong stock exchanges with a current market capitalization of $18-billion. With extensive interests across a broad range of commodities, it is the largest gold producer in China and is a well-capitalized, experienced and successful miner.
Proceeds from the investment will be used to advance the company's flagship Marudi gold project in Guyana, South America. The investment will allow the company to finance its ongoing multiphase exploration program at Marudi, involving up to 10,000 metres of diamond drilling and 12,000 metres of trenching.
Peter Berdusco, president and chief executive officer, states: "It is an honour and privilege to have GMA as a major shareholder and partner. Its strategic investment is a great benefit to the stakeholders of GMA, Guyana Goldstrike and to the people of Guyana. With the exploration stage of the project now financed, we can focus on developing new mineralized zones with the objective of adding additional ounces to the project's recently reported 43-101 mineral resource estimate."
The company has agreed to issue to Zijin Global Fund and Zijin Midas Exploration Fund LLC by way of private placement 12.8 million units of the company at a price of 25 cents per unit for gross proceeds of $3.2-million. Each
unit
will consist of one common share of the company, and one common share purchase warrant exercisable to acquire an additional common share at a price of 35 cents for a period of 24 months. All securities issued in connection with the investment will be subject to a four-month-and-one-day statutory hold period.
Completion of the investment may result in a change of control for the company, as defined by the policies of the TSX Venture Exchange. In the event the investment does result in a change of control, it would be subject to the approval of shareholders of the company. The company intends to seek the requisite approval through the written consent of the majority of shareholders. The investment cannot be completed until the requisite shareholder approval, and the approval of the TSX-V, has been received.
Exploration program: phase one -- currently under way
Phase one of a multiphase exploration program is currently under way at Marudi. The objectives of this first phase are: expand the exposures of mineralized hard-rock at newly discovered locations, follow and expand zones that were identified in trenches by previous operators, and examine areas where gold is present in saprolitic material and a bedrock source has not been identified. Exploration by
trenching and sampling is
an important, cost-effective method for identification of drill targets in saprolite terrane.
The area of immediate focus represents less than 5 per cent of the property. The new locations of interest within this area are: Kimberley ridge,
Marudi North, Marudi
spur
ridge, Toucan North, Pancake Creek, Mariwa and Success Creek.
The work will be conducted under the supervision of Lock
Goldsmith,
MSc, PEng, PGeo, chief geologist and exploration manager for the company. The on-site geological staff will be supported by the property's fully equipped mining camp which comes with employees and service buildings.
Once phase one is completed, the collected
data will be reviewed, analyzed and used in the planning of the company's diamond drilling program.
About the Marudi gold project
The property, located in Guyana, South America, is unique in that it has
a mining licence in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings and a full-time mining manager. The property has
three known gold bearing areas, specifically the alluvial areas, the saprolite overburden and the underlying hard-rock. There has been 42,000 metres of historic diamond drilling completed on the project by prior operators. The company has recently completed a mineral resource estimate on the Mazoa hill zone of
259,100 indicated gold ounces within 4.42 million
tonnes
grading 1.8 grams per tonne and 86,200 inferred gold ounces within 1.65 million
tonnes
grading 1.6 grams per
tonne.
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