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Trading Symbol: WDG - TSX.V
OAKVILLE, ON, Oct. 28, 2011 /CNW/ - October 28, 2011 /CNW/ - Giyani Gold Corp. (TSXV: "WDG" or the "Company") is pleased to announce the execution of a revised binding agreement with Kytanite Development Corp. ("Kytanite") pursuant to which the Company has confirmed its entitlement to acquire Kytanite's interest in the Rock Island gold properties. Pursuant to the revised binding agreement, the Company has the right to acquire a 45% indirect interest in Rock Island Trading 17 (Pty) Ltd. ("RI") from J.B. Scheffer (the "Scheffer Interest") for consideration of C$2,500,000 and 2,500,000 common shares in the capital of the Company of which 9% will be granted to local BEE partners. Upon completion of the acquisition of Kytanite's interest in RI, the Company will, along with its BEE partners and Corridor Mining Resources ("CMR"), a wholly owned subsidiary of the Limpopo provincial government economic development agency, Limdev, own 90% of RI with the balance to be held by the community trust of Limpopo. CMR has consented to the transfer of the Scheffer Interest to the Company and the Company and CMR are sharing all exploration and development costs on the project equally. the Company is in the process of negotiating the acquisition of a further interest in RI from CMR with an intention to control a majority interest in the project. Completion of the acquisition of the Scheffer Interest is conditional on, among other things, the approval of the TSX Venture Exchange Inc. (the "TSX-V").
In connection with the execution of the revised binding agreement and in anticipation of completion of acquisition of the Scheffer Interest, Duane Parnham, Executive Chairman of the Company, has been appointed to the board of directors of RI.
Mr. Parnham noted, "The execution of the revised binding agreement represents the collective efforts of multiple parties and a major achievement for Giyani and our African partners. On behalf of the Giyani team, we thank our stakeholders for their support and patience. Our management team remains focused on obtaining the requisite approvals for acquisition of the Scheffer Interest and positioning ourselves to fully develop this highly strategic past producing gold belt. The Giyani team is committed to corporate social responsibility by delivering and sustaining net benefits to previously disadvantage people and all stakeholders in the Limpopo province of South Africa."
The Rock Island gold assets are a strategically positioned land package located within a key geologically prospective and historically prolific gold producing region in the Limpopo province, South Africa. The assets are located within the Giyani Greenstone Belt which represents a historically underexplored region of the country and a key industry development initiative for both the Chamber of Mines of South Africa and the Geological Society of South Africa. The assets consist of six past producing properties all located within a 13 km long corridor of highly prospective Archean Greenstones. The six past producers include Louis Moore, Klein Letaba, Birthday, Frankie and Horseshoe 1 & 2, which have historically contained high-grade and near-surface gold deposits.
Vice President of Exploration, Robert S. Middleton commented, "Now that our project ownership is in the process of receiving final approvals and our team is in place and on the ground to initiate a focused and aggressive exploration program with the goal of defining a world class gold deposit. Phase One of our exploration and development plan will be to initiate immediately preparations for geology, geochemistry, and geophysics followed by a focused drill program designed to establish a mineable resource."
Completion of acquisition of the Scheffer Interest is expected to occur forthwith upon receiving the conditional approval of the TSX-V but as such completion will be subsequent to October 31, 2011, the Company's management is in the process of seeking the consent of each of the subscribers of units of the Company in the related private placement acquisition financing to further extend the escrow release date of the proceeds of such financing to December 31, 2011.
The Company's Vice President of Exploration, Robert S. Middleton, P.Eng., a Qualified Person as defined by National Instrument 43-101, has read and approved the information contained herein.
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 news release.
On behalf of the Board of
Giyani Gold Corp.,
"Duane Parnham"
Duane Parnham,
Chairman
This news release contains forward-looking statements regarding the future success of the business of the Company that is subject to risk and uncertainties. Examples of such forward-looking statements including, but are not limited to, statements concerning the Company's acquisition of the interest in the Giyani Gold Project, expectations concerning timing and success of exploration activities generally, government regulation of exploration and mining operations, indications and benefits of exploration, drilling test work and engineering assessments, environmental risks, title disputes or claims, and the Company's intention to raise additional capital and financing. These forward-looking statements involve known and unknown risk and intention to raise additional capital and financing. These forward looking statements involve known and unknown risk and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to whether or not the Company will complete the South African transaction, dependence on key personnel, competition, risks related to newly acquired businesses, uncertainty and dilution of additional financing and ability to service debt, as well as the risk factors described in the Company's Management Discussion and Analysis filed on SEDAR at www.sedar.com, and the risk to be described in any Management Information Circular. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.