Vancouver, British Columbia--(Newsfile Corp. - December 28, 2018) - Vangold Mining Corporation (TSXV: VAN) (OTCBB: VGLDF) has entered into a Binding Letter of Intent to acquire the outstanding shares of Aventura Gold, in an arm's length transaction. Privately held Aventura holds an option to acquire the Tassawini Mining License located in Guyana, South America.
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The property, located approximately 170 kilometers northwest of the Guyana capital city of Georgetown, has had historical exploration including exploratory diamond drilling. Since 2004, approximately $34.7 million has been spent on the property by previous option holders, $28.7 million by Stratagold and $6 million by Takara.
The property, which consists of the Tassawini and Sonne deposits, possesses additional exploration potential with various untested zones. The property has undergone extensive geological exploration including diamond and reverse circulation drilling of 1,279 holes totalling 47,509 metres, channel and trench sampling, and 9,167 geochemical soil samples.
An historical resource estimate for these two deposits from a revised Mineral Resource Estimation produced by SRK Consulting in 2010 showed 437,000 ounces of Indicated gold and 62,000 ounces of Inferred gold. These historical estimates employed a cut-off grade of 0.5 grams of gold per tonne. Vangold is not treating this historical estimate as current mineral resources or reserves until sufficient work has been completed.
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To close the transaction, which is subject to several conditions, including exchange approval, Vangold will make cash payments totalling US$4 million and an equity payment of shares valued at CDN$12 million, which will consist of a combination of common and convertible preferred shares. Concurrent to the closing, there will be an equity financing of up to $10 million at the same price as the equity payment. Prior to the closing, Vangold intents to raise $500,000 through an offering of units priced at $0.05, with a 24 month warrant exercisable at $0.10, following a 1 for 2 roll-back.
The company also announced the appointment of Robert Kang to the Board of Directors. Mr. Kang brings a combined 28 years of public practice and company management, having served most recently as the Director of Listings for the TSX Venture Exchange.
Vangold, with a diverse range of quality projects in Mexico, will continue to expand its portfolio with near production opportunities. For more information, please visit the company's website at www.VanGoldMining.com, contact Cameron King, President and CEO, at 604-499-6545 or email cking@VanGoldMining.com.
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