Dorato Completes Non-Brokered Private Placement and Enters Into Royalty Option Agreement With Franco-Nevada Corporationadmin
Wednesday, August 20th 2008
Dorato Resources Inc. announce that it has completed its previously announced non-brokered private placement. Dorato issued 1,500,000 common shares at a price of $1.70 per common share to Franco-Nevada Corporation for gross proceeds of $2,550,000. Franco-Nevada was also granted the right to participate in all subsequent financings on a pro-rata basis for a period of two years. The common shares issued pursuant to the private placement are subject to a hold period expiring December 20, 2008.
Dorato has also entered into the previously announced Royalty Option Agreement (the “Agreement”) with Franco-Nevada. Under the terms of the Agreement, Franco-Nevada has the option to purchase a perpetual royalty on 100% of the gold and silver produced from the Company’s El Tambo and surrounding land package covering approximately 152 square kilometres along the southern extension of Aurelian Gold’s Fruta del Norte structural trend as it enters Peru. The material terms of the Agreement are described in the Company’s news release dated July 18, 2008.
The El Tambo target area hosts a number of high-grade intermediate sulfidation veins and breccia zones as outlined in the Companies July 30, 2008 news release which reported: “The results range from barren rock to 52 g/t gold. 35 samples of obviously mineralized structures and veins range from anomalous to 52 g/t gold and average 16.38 g/t gold and 83 g/t silver”. The El Tambo project is immediately east from the Chinapintza district in Ecuador which hosts high-grade gold veins associated with a porphyry system. Dorato will be initiating a detailed airborne geophysical survey over the El Tambo area next month to augment its ongoing surface sampling program. Data from this phase of exploration will be used to define future drill targets within this very large hydrothermal gold system.