NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: WORLD WIDE MINERALS LTD.
CANADIAN DEALING NETWORK SYMBOL: WWSS
NOVEMBER 30, 1999
World Wide Minerals Expands China Gold Activities Libra
Gold Unit Raises Interim Financing
TORONTO, ONTARIO--World Wide Minerals Ltd. (CDN: WWSS) announced
that its Libra Gold Corporation subsidiary had acquired the rights
to a 51% joint venture interest in the Dafang Gold Project in
Hunan Province, China, previously being developed by Princess
Resources Limited. In addition, Libra Gold has secured
non-recourse equity-based interim financing of US$200,000 to
further its China gold projects.
The Dafang Gold Project is the focal point in a 95 sq. km. gold
concession which has a total drill-indicated and inferred resource
estimated at up to 1.0 million oz. of gold (15 million tonnes of
ore grading 1.23 g/t gold and 46 g/t silver, or 2.0 g/t gold
equivalent) with significant potential for additional ounces. The
resource estimate was prepared by Princess using a gold cut-off of
0.4 g/t gold and inverse distance squared methodology in
accordance with the Australian resource code. Approximately
US$3.5 million previously was spent on exploration of the Project
and related costs in 1997-1998 by Princess, including funding from
Arcon International Resources plc of Dublin.
Libra Gold acquired the interest in the Dafang Gold Project by
purchasing a US$2.5 million 14% convertible secured debenture of
Princess held by Arcon in exchange for paying Arcon a 0.67% NSR
royalty on Princess' 51% interest in the Dafang Gold Project. In
a related transaction, Libra Gold has also acquired the direct
interest of Princess in the Dafang Gold Project in exchange for
reducing the amount outstanding on the debenture by US$1.2 million
and agreeing to pay to Princess a 0.33% NSR royalty on the 51%
interest in the Dafang Gold Project.
In addition, Arcon has been granted the right of first refusal to
earn into 50% of the net interest of Libra Gold in, and to develop
a base metal mine on the Dafang Gold Project in China. If Arcon
exercises the right of first refusal, it would be required to
produce a bankable feasibility study and to construct a base metal
mine including all requisite financing of construction of the mine
and initial working capital.
Libra Gold is the gold exploration subsidiary of World Wide. In
addition to the Dafang Gold Project, Libra Gold also has
interests in the following gold projects:
* The Dexing Gold Project (60% Libra Gold), a 99 sq.km.
concession in Jiangxi Province, China, which surrounds the
Tongshang open pit copper-gold mine (6.7 million oz. and 10.0
billion lbs. of copper) and is adjacent to the Jinshan gold mine
(2.0 million oz. gold). The project has four known target areas
with the potential to host a significant underground or open pit
gold mine.
* The Tongshi Gold Project (55% Libra Gold), a 34 sq. km. area
in southwestern Shandong Province, China. This property is
adjacent to two producing gold mines with reserves of over 1.0
million oz. and with assays as high as 3,100 g/t gold. Three
anomalies have been identified to date and the potential exists to
host a significant open pit or underground mine.
* The Laizhou Gold Project (Libra Gold can earn a 60% and a 68%
interest in the two properties). The Project is adjacent to the
Cangshang gold mine, a 70,000 oz./year producer. Surface
sampling, trenching and diamond drilling has indicated the
potential for a significant open pit or underground mine.
* The Easter Gold Project (Libra Gold 100%) a 1,013 ha. permit
area in Nevada with a 93,000 oz. drill-indicated gold resource.
Libra Gold in 1998 optioned a 70% interest to Aur Resources (USA)
Inc. for option payments of US$150,000 and a US%1.0 million work
commitment over five years.
Interim funding of US$200,000 has been agreed for Libra Gold by
way of a convertible note which can be exchanged for a 20% common
share interest in the existing Libra Gold. The remaining 80%
interest in Libra Gold is held by World Wide.
World Wide is an international resource company whose businesses
consist of the ownership of uranium mines and the marketing of
uranium concentrates from an equity-accounted unit based in
Denver, Colorado, and gold exploration and development based out
of Toronto and Beijing. World Wide is actively pursuing its
US$300 million legal action against the Republic of Kazakhstan and
Nukem, Inc. in the US Federal Court. Through a recently
established subsidiary, Virtual Resources Inc., World Wide is
investigating a potential number of new ventures to recover and
maximize shareholder value. World Wide currently has 80.3 million
common shares outstanding.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
World Wide Minerals Ltd.
Paul A. Carroll
(416) 369-7217
(416) 369-6088 (FAX)
Email: wws@worldwideminerals.com
INDUSTRY: MNG
SUBJECT: NWS |
