Abzu Announces That It Has Renegotiated Their Option Agreements With Red Back. Nangodi and Yameriga Licences Are Now Fully Controlled by Abzu
03.02.2014 | Marketwire
VANCOUVER, Feb 3, 2014) - Abzu Gold Ltd. ("Abzu" or the "Company") (TSX VENTURE:ABS) and its subsidiary Abzu Resources Ghana Limited, announces that it has entered into a termination and release agreement with Red Back Mining Ghana Limited ("Red Back") dated January 31, 2014 (the "Termination and Release Agreement"), pursuant to which the ten option agreements entered into with Red Back on June 24, 2011 (the "Option Agreements") have been terminated.Bob Baxter, President and CEO commented, "Now having full control of the Nangodi and Yameriga licences allows Abzu Gold to advance its plans to develop the Nangodi project."
In conjunction with the Termination and Release Agreement, the Company and Red Back have also entered into a transfer and royalty agreement dated January 31, 2014, pursuant to which Abzu will retain the rights to two of the licenses, Yameriga and Nangodi, previously optioned in the Option Agreements. As consideration for these acquisitions, Abzu has granted a 2% net smelter royalty, payable in cash, on the sale of any minerals or products mined from the Yameriga and Nangodi licenses, to Red Back.
These agreements will become effective upon receipt of consent from the Minerals Commission of Ghana. The Company and Redback are currently working to obtain such consent.
To date, the Company has expended approximately $5.2 million on the Yameriga and Nangodi licenses. Further information on the Company's exploration efforts on these two properties is available on SEDAR, in the Company's financial statements, MD&A and news releases.
On behalf of the board of directors of ABZU GOLD LTD.
Bob Baxter
President and CEO
Neither 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 press release, which has been prepared by management.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward‐looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" within the meaning of the British Columbia Securities Act and the Alberta Securities Act. Specifically, there can be no assurance that the transaction will be completed as proposed or at all. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward‐looking information. By their very nature, forward‐looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Abzu's business or proposed business, which are not historical facts, are forward‐looking information that involve risks and uncertainties, such as estimates and statements that describe Abzu's future plans, objectives or goals, including words to the effect that Abzu or management expects a stated condition or result to occur. Since forward‐looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward‐looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward‐looking information, whether as a result of new information, future events or otherwise.
Contact
Abzu Gold Ltd.
Bob Baxter, President and CEO
604 638 3288
604 398 5387