AuRo Resources Receives Exchange Approval on White Gold Acquisition
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/27/11 -- AuRo Resources Corp. (the 'Company') (TSX VENTURE: ARU)(FRANKFURT: NXP3) is pleased to provide an update on its proposed acquisition of all of the issued and outstanding securities in the capital of White Gold Corporation ('White Gold'). For complete details on the acquisition, please see the Company's press releases of March 9, April 28 and May 19, 2011.
On June 22, 2011, AuRo received approval from the TSX Venture Exchange on the acquisition of all of the issued and outstanding shares of White Gold Corporation. Subsequently, on June 23, 2011, the shareholders of White Gold approved the amalgamation of White Gold with a wholly owned subsidiary of the Company. Pursuant to the terms of the amalgamation agreement, the shareholders of White Gold will receive an aggregate of 21,000,000 common shares in the capital of the Company at a deemed price of $0.15 per share, 38% of the total shares to be issued shall be released to the White Gold Shareholders on closing. The remaining 62% of the total shares to be issued shall be released, on a pro rata basis, to the White Gold Shareholders upon White Gold receiving Concession Agreements to the White Gold Properties that are in the 'Pending Concession' and 'Lease Application' stages.
In addition, the Company will issue the following securities:
(i) an aggregate of 800,000 replacement options which will entitle the holder thereof to acquire one common share in the capital of the Company at an exercise price of $0.15 at any time until October 22, 2015; and
(ii) an aggregate of 150,000 replacement warrants which will entitle the holder thereof to acquire one common share in the capital of the Company at an exercise price of $0.25 at any time until February 21, 2012.
Mark Lawson, President & CEO of the Company, stated, 'Given the strength of our current technical team in Colombia, with the addition of the diverse portfolio of the White Gold properties, we believe this presents a very compelling opportunity going forward.'
John Gomez, President & CEO of White Gold said, 'With our large land package and Auro's new, exceptional geological team, we're well positioned to make further discoveries in two of Colombia's most prolific gold camps.'
In connection with the acquisition, the Company has agreed to pay an arm's length party a finders' fee of $220,000 of which $90,000 will be paid by way of a cash payment and the remaining balance of $130,000 will be satisfied through the issuance of 866,667 common shares at a deemed price of $0.15 per common share.
Overview of White Gold
Through its wholly-owned Colombian subsidiary, Oro Barracuda SAS., White Gold has solicited nearly 70,000 hectares in Colombia for mineral exploration. The concessions are a combination of concession titles and applications, located in two major gold regions of Colombia, covering parts of five departments ('Provinces'), including nearby the California-Vetas gold-silver mining district, host to Ventana Gold Corp.'s (recently acquired by Eike Batista's EBX Group) 3.5 million ounce (Inferred) La Bodega gold discovery, and Greystar Resources Ltd.'s 8.9 million ounce (M&I) Angostura gold deposit. The balance of properties are located in the departments of Tolima and Quindio in three distinct blocks near the La Colosa project, a 12.9 million ounce (Inferred) gold deposit discovered by AngloGold Ashanti Ltd. La Colosa is the largest gold discoveries in South America in recent years.
FOR THE PURPOSE OF PROVIDING INFORMATION RELATING TO THE SURATA GOLD PROJECT - SANTANDER, ARBOLEDAS GOLD PROJECT - NORTE DE SANTANDER, AND LA COLOSA GOLD PROJECTS - TOLIMA AND QUINDIO (THE 'PROPERTIES'), THE COMPANY IS RELYING ON INFORMATION PROVIDED TO IT BY WHITE GOLD. INFORMATION PERTAINING TO THE SURATA AND ARBOLEDAS PROPERTIES INCLUDES INFORMATION DERIVED FROM NATIONAL INSTRUMENT 43-101 REPORTS, AS PREPARED FOR WHITE GOLD CORPORATION BY ANDREW J. TURNER, P.GEO. INFORMATION PERTAINING TO THE LA COLOSA PROPERTIES WAS DERIVED FROM HISTORICAL GEOLOGICAL INFORMATION AND DOES NOT PRESENTLY CONFORM TO THE STANDARDS AS OUTLINED IN NATIONAL INSTRUMENT 43-101.
Key Projects:
Surata Gold Project - Santander
-- Interests in approximately 20,000 hectares located approximately 10 - 25
kilometers from the multi-million ounce La Bodega and Angostura gold-
silver projects.
-- Gold has been discovered in an area 10 kilometers northwest of La Bodega
along a parallel NE trending fault structure.
-- Initial samples include sulphide bearing (pyritic) quartz veins with
assays up to 3.06 g/t gold. These samples possess a fairly unique
geochemical signature with a strong epithermal association including
elevated arsenic, antimony, bismuth and copper.
-- The Surata property has bedrock geology similar to that which hosts
mineralization in the adjacent California-Vetas district.
Arboledas Gold Project - Norte de Santander
-- Interests in approximately 14,000 hectares located approximately 18
kilometers north of the La Bodega and Angostura deposits.
-- Gold has been identified in areas exposed by landslides and active
artisanal mining.
-- Small-scale artisanal miners are working north-east striking, oxidized,
subvertical veins hosted in feldspar porphyry. Workings consist of 8
adits which are targeting oxidized quartz veins and clay structures up
to 1 m wide.
La Colosa Gold Projects - Tolima and Quindio
-- Interests in approximately 30,000 hectares in three separate areas 12 -
25 kilometres east, west and south of AngloGold's La Colosa gold
project.
-- Properties cover highly prospective gold areas and/or mine sites
identified by INGEOMINAS, the Colombian Institute of Geology and Mining.
-- With inferred resources of 12.9 million ounces, La Colosa is the largest
gold project in Colombia. In 2011, AngloGold reportedly plans to invest
over US$100 million in Colombia, with most of this investment budgeted
for development of La Colosa.
ON BEHALF OF THE BOARD
Mark Lawson, President & CEO
ON BEHALF OF THE BOARD OF WHITE GOLD CORPORATION
John Gomez, President & CEO
Cautionary Note Regarding Forward-looking Statements
Certain statements contained in this news release may constitute forward-looking information, within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in the Company's public filings, Forward-looking information and anticipated events or results and can be identified by terminology such as 'may', 'will', 'could', 'should', 'expect', 'plan', 'anticipate', 'believe', 'intend', 'estimate', 'projects', 'predict', 'potential', 'continue' or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to capital and operating expenditures, economic conditions, availability of sufficient financing, receipt of approvals, satisfaction of closing conditions and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other public filings of the Company, and include the ultimate availability and final receipt of required approvals, sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime and the ultimate ability execute its business plan on economically favorable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Company filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, the Company does not intend, or undertake any obligation to update any forward looking information to reflect, among other things, new information or future events.
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.
Contacts:
White Gold Corporation
John Gomez
President & CEO
604-484-7118
AuRo Resources Corp.
Mark Lawson
President & CEO
416-623-0565
AuRo Resources Corp.
Jeremy Ross
Corporate Development
604-893-8838
AuRo Resources Corp.
Tyler Ross
Corporate Development
604-893-8838
604-681-0796 (FAX)
www.auroresources.com