Gossan to Invest in East Mining Company and Announces Private Placement
24 Outubro 2011 - 5:06PM
Marketwired
Gossan Resources Limited (TSX VENTURE:GSS)(FRANKFURT/FREIVERKEHR
& XETRA:WKN 904435) has signed a Letter of Intent (LOI) with
East Mining Company SA ("EMC") of Athens, Greece, to investigate
and examine the possibilities of acquiring mineral projects within
Europe, on a non-exclusive basis, and initially to assess three
potential projects in Greece. Additional projects may be
pursued.
Under the terms of the LOI, Gossan will invest Euro 300,000,
currently about CDN $420,000, and provide certain expertise for a
40% equity interest in EMC, a private company in registration,
subject to due diligence and receipt by EMC of one or more mineral
resource licenses by no later than March 31, 2012, or such other
agreeable date, and the approval of the TSX Venture Exchange.
Douglas Reeson, CEO of Gossan, commented, "An investment in East
Mining Company provides Gossan with the opportunity to participate
in a material re-valuation of mineral assets and potentially
support Gossan in broadening its magnesium strategy into
Europe."
Gossan is also undertaking a non-brokered private placement of
up to $860,000 of units (the "Units"), subject to the approval of
the TSX Venture Exchange. Each Unit consists of one common share
and one common share purchase warrant at a price of $0.16 per Unit.
Each warrant entitles the holder thereof to purchase one additional
common share of Gossan at an exercise price of $0.24 per share
during the period ending November 29, 2013.
All securities issued in the course of the Offering will be
subject to a regulatory hold period of four months and one day, and
a voluntary hold period for a further 8 months or one year in
total. Insiders of the Company may subscribe for in excess of 25%
of the aggregate proceeds of the contemplated private placement.
The principals of EMC may also subscribe to the contemplated
private placement. No fees are anticipated to be paid in regard to
the placement of the issue. Proceeds of the Units may be used to
complete the proposed investment in East Mining Company and will be
used for general working capital purposes. The private placement
may be closed in two or more tranches.
On September 23, 2011, Gossan received an offer for the sale of
its equity interest in The Claims Network Inc. (TCN), a service
provider to the property and casualty insurance industry of
claims-related services, for a net sale price of $1.4 million. TCN
has declared a dividend, in accord with the terms of the agreement,
and Gossan has received a payment of $115,030. The transaction is
subject to a first right of refusal by existing TCN shareholders,
the execution of a definitive agreement with the offeror and the
approval of the TSX Venture Exchange, if necessary. The transaction
is expected to close in early December 2011 however no assurance
can be provided that the transaction will close (see NR-11-04 dated
September 23, 2011).
Gossan Resources Limited is engaged in mineral exploration and
development in Manitoba and northwestern Ontario. It has a
well-diversified portfolio of properties hosting gold, platinum
group and base metals, as well as the specialty and minor metals,
vanadium, titanium, tantalum, lithium, and chromium. The Company
also has a large deposit of magnesium-rich dolomite, the world-wide
rights to the Zuliani magnesium production process, and a silica
frac sand deposit. Gossan trades on the TSX Venture Exchange and
has 29,277,900 common shares outstanding.
For further information, please bookmark www.gossan.ca.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Contacts: Gossan Resources Limited Douglas Reeson CEO (416)
533-9664info@gossan.cawww.gossan.ca
Gossan Resources (TSXV:GSS)
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