Looking for some good stuff coming up soon!
I'm long,
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Here is the last news release-
Amarillo to acquire shareholder approval for RTO
2005-02-11 13:47 ET - News Release
Mr. Buddy Doyle reports
Amarillo Gold Corp. has filed with the TSX Venture Exchange its information circular as part of the process of obtaining shareholder approval for the transactions constituting Amarillo's reverse takeover and thereby meeting the minimum requirements to be listed as a Tier 2 company on the TSX Venture Exchange. After review and acceptance by the exchange, a date will be set for a special shareholders meeting and the information circular will be mailed to the shareholders. At this meeting, Amarillo's shareholders will be asked to approve a resolution to ratify, confirm and approve the purchase of Metallica Brasil Ltda for $450,000 (U.S.). The shares of Metallica Brasil will be held in trust by an arm's-length party pending receipt of exchange acceptance and shareholder approval. The main asset of Metallica Brazil is the Mara Rosa gold project, located in Goias state, Brazil. Amarillo will also seek an ordinary resolution approving a private placement financing at that time. The information circular will fully disclose the current status of the company and the proposed Mara Rosa purchase.
As part of the rationalization of the company and its new focus on Brazil, Amarillo has let lapse or has relinquished all its non-Brazilian properties. These lapsed properties include the Otish Mountain properties (diamond exploration area play), the Paradise property (rare metals option in British Columbia), the Kelly property (a platinum exploration option near Sudbury, Ont.), the Pluto property (a gold exploration property in the Yukon), the Canex property (near Nelson, B.C.) and the Sunro property (an option near Sooke, B.C.).
The focus of Amarillo is now fully on its Brazilian projects, Mara Rosa and San Antonio, both subject to exchange and shareholder acceptance.
The Mara Rosa project is a greenstone belt shear-hosted mesothermal gold mineralized system that contains within it the Posse gold deposit. The mineralized system stretches along the shear for about 10 kilometres as evidenced by geological mapping and soil geochemistry. It was previously mined by Western Mining, which extracted 30,000 ounces of gold. There has been over 234 exploration holes totalling 19,592 metres in the area around the Posse deposit. With the assay information from this drilling along with assays from 4,320 blast holes, 185 metres of underground sampling and 278 metres of surface sampling, Metallica Brazil estimated that the Posse deposit contained a resource of 12.75 million tonnes containing 726,500 ounces of gold (measured 51.2 per cent, indicated 36.6 per cent and inferred 12.2 per cent, using krieging, based on a one-gram-per-tonne cut-off, with high-grade gold cut to 10 grams per tonne). Amarillo would like to be clear that this is not presented as a reserve or resource; the Metallica estimate is given here to illustrate that there is significant gold mineralization on the Mara Rosa project, this being one of the reasons Amarillo management was attracted to the project. It is Amarillo's intent to bring the deposit description to National Instrument 43-101 standards as soon as practical. This will be done by check assaying the extensive core library at Posse and independent analysis of assay results mentioned above. Amarillo's future plans for the Mara Rosa project also includes reviewing the known mineralization for high grades (greater than five grams per tonne) and growing the resource through exploration on the 28,000 hectares of ground held in the project, the most prominent target being the greater-than-0.2-gram-per-tonne soil anomaly that continues along strike for many kilometres north of the Posse deposit.
The San Antonio project is an option from Phelps Dodge Do Brasil Mineracoa Ltda. It is also in the state of Goias, 146 kilometres from the Mara Rosa project. The property consists of 1,931 hectares of exploration permits, within which there are gold and copper stream and rock chip anomalies hosted in carbonates in a promising structural setting. Artisanal mine workings on the property (now abandoned), have returned rock chip analyses that have assayed to a maximum of 22 grams per tonne of Au and Ag up to 115 grams per tonne. The mineralization is hosted in steeply dipping silicfied veins within the carbonate host. These veins variously returned assays in the range of 22 metres at 8.8 grams Au, five metres at 11.7 grams per tonne, 1.4 metres at 4.2 grams per tonne, and so on. It is Amarillo's intention to drill test the down-dip extensions of this vein/structural mineralization. The option with Phelps requires 400 metres of drilling to be completed in the first year. This drilling is estimated to cost approximately $130,000. Amarillo earns 50 per cent by completing 1,000 metres of drilling and expending $250,000 (U.S.). Amarillo can earn up to a 100-per-cent interest by spending a total of $1-million and presenting a bankable feasibility study by the sixth year. Phelps can elect to participate any time after the initial Amarillo earn-in; if it does not participate, then it retains a 2-per-cent net smelter return royalty.
Amarillo hopes to build from this project base with the view of becoming a competitive Brazilian gold producer in the future.
Completion of the transaction is subject to a number of conditions, including, but not limited to, exchange acceptance and disinterested shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the transaction, any information released or received with respect to the reverse takeover may not be accurate or complete and should not be construed as any assurance with respect to the merits of the transaction or the likelihood of completion.
Canaccord Capital Corp., subject to completion of satisfactory due diligence, has agreed to act as sponsor to the company in connection with the transaction. An agreement to sponsor should not be construed as any assurance with respect to the merits of the transaction or the likelihood of completion. |
