Luna Gold renegotiates earn-in terms for the Cachoeira project
Fri Dec 12, 1:24 PM
ca.news.finance.yahoo.com
VANCOUVER, Dec. 12 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce that it has renegotiated the terms of the agreement relating to its Cachoeira project, which was originally announced on October 9, 2007. The amended terms extend the period of time that Luna has to complete its earn-in obligations to acquire 100% of the Cachoeira project, subject to a royalty and back-in rights. The original terms have been amended as follows:
- Timeframe for complying with the remaining exploration expenditure
requirement has been extended by one year to October, 2010
- Date for completion of a NI 43-101 compliant resource estimate has
been extended by one year to October, 2010
- Program date for start of commercial gold production at Cachoeira has
been extended by one year to October, 2012
Luna's CEO, Jim Bahan comments, "Luna's progress at Cachoeira has been excellent and it has adhered to the first year terms and expectations. This has been recognized by the Vendors. The extended time provided under the amendment will allow the Company to better manage its resources during the coming year, with a clear focus on advancing its Aurizona project."
Upon Luna funding the remaining balance of the required direct exploration expenditures at Cachoeira, of approximately R$6M, it will acquire a 100% interest in the property, subject to a 4.0% operating royalty of which Luna may buy back up to 2.0% by paying the Vendors a total of US$4M. One of the Vendors, CNM, a subsidiary of Kinross Brazil, has the right to back-in for a 51% interest by refunding Luna's exploration expenditure should a NI 43-101 compliant resource estimate, containing mineable reserves exceeding 2 million ounces of gold, be completed by October, 2010.
In the event that the program date for commercial gold production is not achieved, Luna will pay the Vendors a total of US$200,000 per year, in lieu of the operating royalty, until such time as commercial gold production is achieved.
About Luna Gold Corp
Luna is a mining exploration company focused on the acquisition, exploration, and development of gold resources and advanced stage gold exploration projects in northeastern Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Jim Bahan - CEO & COO
Website: www.lunagold.com
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
Regulatory Footnotes
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Statements:
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially.
Contacts
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