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CANADA GOLD SIGNS LETTER OF INTENT TO ACQUIRE 702 SQUARE KM TANZANIAN GOLD PROJECT
May 10, 2011 (TheNewswire.ca) -- Vancouver, British Columbia, Canada - May 10, 2011 - Canada...
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[{"type":"text","content":"\nCANADA GOLD SIGNS LETTER OF INTENT TO ACQUIRE 702 SQUARE KM TANZANIAN GOLD PROJECT\n\n May 10, 2011 (TheNewswire.ca) -- Vancouver, British Columbia, Canada - May 10, 2011 - Canada Gold (TSXV:CI) (OOTC:CNGZF) Corporation (TSX-V: CI, Frankfurt: T9N, OTC-BB: CNGZF)(\"Canada Gold\" or the \"Company\") announces that it has entered into a Letter of Intent (\"LOI\") to acquire a 100% interest in 4 prospecting licenses, potentially hosting gold and other minerals, totaling approximately 702 square kilometers in North-Eastern Tanzania, from the Eden Group of Tanzania.These prospecting licenses, collectively called the Sindeni Project, are located within the Mozambique Geological Belt, and are located approximately 40 kilometers from the northeastern boundary of Canaco Resources Inc. (TSXV:CAN) , (TSX-V: CAN), Magambazi Property, in the Handeni district in the Tanga region, northeastern Tanzania. The Mozambique Belt is highly deformed with shear zones developed on a north-eastern and mostly west north-western trend. Folding is present at both regional and local scale. These structures are an important target area for gold mineralization within the fold hinge zones, while erosion of the latter results in numerous small-scale alluvial workings within the Handeni District. The Canaco Magambazi Property is located on a northwest-southeast trending structure with artisanal gold workings nearby. The Sindeni Property has similar northwest-southeast trending structures, also with artisanal gold workings nearby. Canada Gold's initial exploration focus will be on two large areas near these artisanal workings.The consideration for the acquisition are cash payments of US $1,050,000, incurring exploration expenditures of US $4,000,000 and the issuance of 3,500,000 shares from treasury over a 3 year period. The optionor retains a 2.5% net smelter return royalty of which, 1.5% can be purchased for US $2,000,000 at any time, once all considerations have been satisfied.\n\n-------------------------------------------------------------------\n|Payment Date |US Cash | |Shares |Work Commitment|\n|-----------------------------------------------------------------|\n|On TSX Filing* |$ 50,000 | |- -- |\n|-----------------------------------------------------------------|\n|On TSX-V Approval |$ 100,000 | |1,000,000 |- |\n|-------------------------...