Kalahari Resources to Acquire Remaining Interest in Flagship Lamaque Gold Projectadmin
Kalahari Resources Inc. announce it has entered into agreements with Tundra Gold Mines Limited (‘Tundra’) and Golden Pond Resources Ltd. (‘Golden Pond’), the joint venture parties on the Lamaque property in Val d’Or, Quebec in order to consolidate ownership and allow for more advanced exploration to proceed.
“The existing ownership structure has prevented Kalahari from securing the interest of a larger mining company to help explore on the property, a primary focus for the Company following its upcoming drill program. This fragmented ownership and inability to coordinate exploration efforts with Golden Pond and Tundra, both delisted companies, significantly hindered project advancement in the past,” comments Company Chairman, Richard Hughes. “Aside from sporadic drilling, the property has not seen a major exploration effort since 2004, when the price of gold was approximately $400USD per ounce. The recent acquisition of the land adjacent to the Triangle Anomaly where we drilled a narrow, extremely high-grade intercept in 2004, will be tested in an upcoming program, as well as numerous other magnetic anomalies located on the property.”
The Golden Pond and Tundra land was originally optioned from Teck Corporation (‘Teck’) in 1985 and 1986, respectively. Tundra and Golden Pond contributed to exploration on the property in the late 1980s, spending over $12 million in combined expenditures before delisting in 1991 and 1992, respectively. Including Teck’s portion, over $24 million was been spent on exploration on the Lamaque property defining the resource estimates provided above and further advancing other targets on the property , prior to its acquisition by Kalahari.
In 2003, Kalahari entered into an option agreement with Teck whereby Kalahari could earn 100% of Teck’s interest in both the Golden Pond and Tundra agreements. Since then, Kalahari has fulfilled the terms of the option agreements and assumed Teck’s responsibilities for their portion of the property. The Company has continued to work on the property and since 2003 has spent an additional $4.5 million developing and advancing the property. Tundra and Golden Pond’s ownership percentages continue to be diluted as Kalahari spends more funds exploring the Lamaque property.
Kalahari has entered into an agreement regarding Tundra’s and Golden Pond’s interests in the Lamaque property by issuing one Kalahari share for every three shares currently outstanding in the delisted companies. This would mean issuing 9,593,128 shares to Tundra and 2,902,861 shares to Golden Pond, which asset could then be distributed in either cash or shares to shareholders, pro rata as the Board of Directors of Tundra and Golden Pond may determine. This share consideration amounts to approximately one share of Kalahari for every dollar Tundra & Golden Pond have spent on the property. Following this transaction, Tundra and Golden Pond would own shares in an active, publicly traded company (Kalahari), and also have an interest not only in Tundra’s and Golden Pond’s percentage of their part of the Lamaque claims, but in the entire Lamaque property, which includes the Roc d’Or East and West properties and the Roc D’Or East Extension. The agreements to purchase are subject to shareholder approval by Golden Pond and Tundra and regulatory approval.
Kalahari’s plan is to further advance the gold resources on the Lamaque property and then seek a joint venture partner with significant funds and the technical ability to commence mining on the property.
The Company also announces the resignation of its President, Albert Applegath, due to health reasons. The Board of Directors expresses their sincere thanks and appreciation to Mr. Applegath for his invaluable contribution and service to the Company during his time as President.