Pelangio – Drilling campaign starts at Detour Lake property, Ontarioadmin
Pelangio Mines Inc. announces that Detour Gold Corporation (“Detour Gold”) has commenced a 50,000 metre drilling program at the Detour Lake Property. The program will focus on expanding the current near-surface resource of 3.4 million ounces (indicated resource of 20.0 million tonnes grading 2.14 g Au/t containing 1,379,500 ounces and inferred resource of 35.4 million tonnes grading 1.8 g Au/t containing 2,035,650 ounces). The mineral resource is located in the area of the former Detour Lake mine, which produced 1.8 million ounces of gold from 1983 to 1999. Effective January 8, 2007, Pelangio and Detour Gold have amended the Asset Purchase Agreement dated as of August 21, 2006 (amended on September 21, 2006 and October 4, 2006) to increase the work budget being funded by Detour Gold from $1,578,485 to $2,513,679 in contemplation of the commencement of the drilling program. Under the Asset Purchase Agreement, Pelangio’s Detour Lake Property will be transferred to Detour Gold, a newly formed company, part of the Hunter Dickinson group of resource companies.
The closing of the transaction is scheduled for January 30, 2007, and is subject to additional conditions including:
– Completion by Detour Gold of a minimum $15 million initial public offering no later than January 30, 2007; – Cash payment of $4 million on closing; and
– Other customary conditions.
For further information on the transaction, refer to Pelangio’s management information circular dated September 25, 2006 and available on SEDAR.
This transaction converts Pelangio’s interest in the Detour Lake Property from a direct project interest into an indirect interest through approximately 47% equity ownership in Detour Gold, which is anticipated to be fully financed to a minimum of $25 million. This transaction is consistent with Pelangio’s strategy of seeking partners for, or selling an interest in promising properties that are reaching the development stage. Going forward, Pelangio will focus its exploration efforts on its large and promising property in Ghana and in evaluating other opportunities to provide shareholder value.
Pelangio is a gold exploration company active in the top-ranked mining jurisdictions in the world, Canada and Ghana. The Company’s main focus is to advance its exploration programs on its premier land position in Ghana totaling 411 square kilometres, located on strike and adjacent to AngloGold Ashanti’s Obuasi gold mine.
Forward Looking Statements
Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information include statements regarding the sale of the Detour Lake Property and the issuance of shares in connection with the sale and are subject to such forward-looking risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Such risks include the failure to satisfy the conditions of closing the sale of the Detour Lake Property. See our annual information form, management information circular, and our quarterly and annual management’s discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of Pelangio. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statement and information herein are qualified by this cautionary statement.
For further information: please visit our website at www.pelangio.com or contact: Ingrid Hibbard, President & CEO – Pelangio Mines Inc., Tel: (905) 875-3828, Fax: (905) 875-3829, Email: firstname.lastname@example.org; Laurie Gaborit, Investor Relations – Pelangio Mines Inc., Tel: (416) 350-2112, Fax: (905) 875-3829, Email: email@example.com; Martti Kangas, Investor Relations – The Equicom Group Inc. (Toronto), Tel: (416) 815-0700 ext. 243, Fax: (416) 815-0080, Email: firstname.lastname@example.org