Astur Gold Enters Into Joint Venture With Silver Swan for La Codosera Property
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/12 -- Astur Gold Corp. (TSX VENTURE: AST)(FRANKFURT: CDC) ("Astur Gold" or the "Company") is pleased to announce that it has entered into a legally binding Joint Venture Agreement with ASX-listed Silver Swan Group Limited (ASX: SWN) ("Silver Swan") allowing Silver Swan to earn up to an 80% interest in Astur Gold's La Codosera gold property by incurring AUD$3M in exploration expenditures.
Under the terms of the Joint Venture Agreement, Silver Swan will earn an initial 51% interest by incurring AUD$1.5M in exploration expenditures within a period of 3.5 years, including a minimum expenditure commitment of AUD$500,000 to be spent within the first 14 months. Following the initial earn-in, Silver Swan may earn an additional 29% interest (80% total) in La Codosera by incurring further expenditures of AUD$1.5M within 5 years. Silver Swan will also issue to Astur Gold up to AUD$1,000,000 worth of Silver Swan shares in two $500,000 tranches, conditional upon Silver Swan achieving Indicated JORC Resources of 500,000oz gold and 1,000,000oz gold respectively. The value of the issued shares will be calculated based on the 10-day VWAP of Silver Swan.
"This joint venture allows Astur Gold to focus our engineering, social licensing, and permitting expertise on developing our cornerstone asset Salave, while still maintaining exposure to the upside potential of La Codosera. We look forward to working with Silver Swan to unlock value at La Codosera," stated Astur Gold President and CEO Cary Pinkowski.
La Codosera comprises five mineral permits covering an area of 1,851 hectares, located 40km from the provincial capital of Badajoz of the Extremadura region of eastern Spain. The Extremadura region is known as a leader in mining industry support and is one of the most famous historic gold districts in Spain. The area was mined by the Romans approximately 2,000 years ago and the workings are considered contemporaneous with other Roman mining operations including Astur Gold's flagship Salave project in the Asturias region in northern Spain.
Silver Swan's Work Program
Silver Swan will commence exploration activities at La Codosera in April. An initial programme of geological and structural mapping will put particular emphasis on the vein systems and the inter-relationships between each of the prospect areas in an attempt to establish controls on mineralization and define mineralization along strike. A drill program will follow.
ABOUT ASTUR GOLD
Astur Gold is developing its 100% owned Salave Gold Project in Asturias, northern Spain. Salave is one of the largest undeveloped gold deposits in Western Europe. The Company submitted an application for an underground mine permit to the government of Asturias in September 2011, and are currently conducting underground mine planning and an Environmental Impact Study. The Company is building a partnership with the people of Asturias to generate sustainable economic benefits for the region while balancing the needs of environmental protection and social community development.
ON BEHALF OF THE BOARD
Cary Pinkowski, Chief Executive Officer and Director
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.
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 release.
Contacts:
Astur Gold Corporation
Vadim Dubchak
604-694-1600
604-694-1663 (FAX)
info@asturgold.com
www.asturgold.com