LAVAL, Jan. 16 /CNW/ - Stellar Pacific Ventures Inc. (SPX) is pleased to announce that it has entered into an agreement with MGWA Holding Int'l Inc. to acquire up to 90% interest into the Siguri Gold Property in Guinea West Africa.
The Siguri Gold Property covers an area of 107 km2 in the well renowned Siguri Gold Camp of northeastern Guinea. The Siguri basin is underlain by volcano-sedimentary rocks of the lower parts of the Upper Birimian Group, the equivalent to our Greenstone belt. The property is advantageously located in the surrounding of all Guinea gold mines, namely, the Semafo's Jean and Gobele project as well as of the Lero mine and the Anglo/Ashanti of Siguri mine.
Also, it is important to state that the property is located some 35 km to the NW of Cassidy's recent discovery where an Indicated resource of 337,000 ounces and an inferred resources of 364,000 ounces of gold were announced on 2006-09-19.
Within the perimeter of the Siguri property, numerous artisans gold diggings are observed along the drainage system of the Farafin River, namely, a 1 km long by 200 m wide gold placers reported into the BGR'S 1998 "Evaluation de l'Inventaire des Ressources Minerales de Guinee". The Farafin River could be the topographic signature of an N80 degrees E major structure, along which, extension fractures, NW-SE are also observed on the topography of the area. The gold occurrences are most likely related to those structures.
The company can earn its interest by paying $100,000, completing $400,000 in exploration work and issuing a total of 1,500,000 shares of its share capital over a period of two years as follows:
1- To buy 20% interest, Stellar will pay $20,000 and issue 150,000 shares to MGWA at the signature upon the approval of the TSX Ventures and 150,000 shares in 6 months and spend $200,000 in exploration within the first year. 2- Stellar will earn an additional 25% interest by paying $20,000 and by issuing 500,000 common shares at the first anniversary of the agreement and by spending an additional $200,000 in exploration work to be performed between the 13th and 24th month. 3- Stellar will finally earn an additional trench of 45% interest by paying $60,000 and by issuing 800,000 common shares to MGWA Holding Int'l at the date of the second anniversary of the signature of the agreement. Stellar Pacific Venture Inc. also has the option to buy back the remaining interest of 10% in the Permits for a total consideration of $2.0 million. Stellar Pacific Venture Inc. is a junior mining exploration company listed on the TSX-V whose primary objective is to develop and bring into production viable gold deposits. "Michel Lemay" ---------------------------- Michel Lemay President
The TSX Venture Exchange has in no way passed on the merits of the
proposed transaction and has neither approved or disapproved the contents
of this press release.