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Riverstone Resources Inc. announced that its acquisition of an indirect 90% interest in the Goulagou, Rounga, Tougou and Youba permits located in Burkina Faso, West Africa from Golden Star Resources Ltd. is now complete.
US$6.6 million of the US$18.6 million purchase price was paid in cash, and 21,676,301 Riverstone common shares were issued at a price of Cdn$0.5694 per share in satisfaction of the remaining US$12 million. The Riverstone shares issued in partial satisfaction of the purchase price are subject to resale restrictions under applicable securities laws and an Exchange hold period expiring four months and one day following closing. The Properties form part of the Company's flagship Karma Project which comprises six contiguous permits, the remaining two of which, Kao and Rambo, are 100% held by Riverstone. "Acquisition of these Properties which are key to the Karma project and our future development plans represents a major milestone for Riverstone." commented Dwayne L. Melrose, President and COO of Riverstone. "The Goulagou permit alone contains in excess of 1.5 million estimated ounces of gold resources. At an acquisition cost of approximately $12 per ounce this represents incredible value for our shareholders. The current working capital of $11 million plus the additional 16 million Roxgold Inc. common shares valued at $30.2 million gives the Company a solid financial position going forward to further develop this flagship project." The 21,676,301 Riverstone common shares issued as consideration represents 15.3% of the Company's common shares on a fully-diluted basis. Further details of the transaction can be obtained from the Company's news release dated December 23, 2011. A recently updated NI 43-101 compliant resource estimate prepared by P&E Mining Consultants Ltd. of Brampton, Ontario, increased by 42% the overall global mineral inventory (approximately 800,000 Oz Au) on the Karma Project. The estimate was completed on the Goulagou I, Goulagou II, Kao, Rambo and Nami deposits which are all in close proximity to each other. Highlights (resources are contained within five Whittle open pit shells) • Global Mineral Inventory (inside and outside of Whittle pit shells) consists of Indicated gold mineralization totaling 1,773,000 ounces of gold in 54.1 Mt at an average grade of 1.02 g/t Au and Inferred gold mineralization totaling 959,000 ounces of gold in 37.4 Mt at an average grade of 0.8 g/t Au. • Total Indicated gold resources within five Whittle pits are 1,634,000 ounces of gold in 47.34 Mt at an average grade of 1.07 g/t Au. • Total Inferred gold resources within five Whittle pits are 566,000 ounces of gold in 18.93 Mt at an average grade of 0.93 g/t Au. • 74% of the resources within the Whittle pit shells are classified as Indicated gold resources. • This resource will be used as the basis for proceeding with a Preliminary Economic Assessment (PEA) commencing in Q1, 2012. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. |
