Norvista Resources Corporation Exercises the Option on High Desert Gold's Canasta Dorada Gold Project in Mexico
October 07 2010 - 7:30AM
Marketwired
High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:
HDG)(PINK SHEETS: HDGCF) announced today that Norvista Resources
Corporation ("Norvista"), a private Canadian corporation
headquartered in Toronto, has exercised the option on the Company's
Canasta Dorada gold project located in Sonora, Mexico. Under the
agreement, as previously reported (see HDG PR10-13, July 2, 2010),
Norvista had a six-month option to acquire a 51% interest in a
wholly- owned subsidiary of HDG, to be established ("Newco") for
US$1.5 million. Newco will be set up to hold all the HDG property
interests in the Canasta Dorada Project. Norvista will be manager
of the project under the direction of Mr. Rick Adams, most recently
a founder and director of Castle Gold Corporation ("Castle Gold").
Under the agreement, Norvista will then be obligated to take Newco
public within one year or risk losing operatorship.
Ralph Fitch, HDG President and CEO, stated, "I believe as I
previously stated in the July 2 announcement that this is an
excellent opportunity for the Company and for our shareholders.
Newco will be led by several former members of the Castle Gold
management team. Castle Gold successfully developed and operated
two open-pit, heap-leach gold mines in Mexico and Guatemala, and
was acquired by Argonaut Gold Corp. for gross proceeds of
approximately Cdn$110 million during the first quarter of this
year. Norvista's immediate focus will be to explore extensions of
the mineralization already defined by HDG's initial drill program.
This affords the Company the opportunity to advance Canasta Dorada
without further expense to HDG or share dilution, while at the same
time, allowing our management team to focus on advancing the two
very promising gold projects in our portfolio, Gold Springs in the
US and San Antonio in Mexico."
ABOUT NORVISTA
Norvista Resources Corporation, founded by noted Canadian mining
company executive, Gerry McCarvill, is a private merchant bank
dedicated to making investments in the natural resource sector. Mr.
McCarvill has been instrumental in the founding of a number of
international mining companies with a value into several billions
of dollars. Norvista is building a portfolio of mining companies
designed to provide investors with a broad exposure to the sector.
www.norvistaresources.com.
ABOUT HIGH DESERT GOLD
The Company is a mineral exploration company that acquires and
explores mineral properties, primarily gold, copper and silver, in
North America. The major properties held by HDG are the Canasta
Dorada gold property in Sonora, Mexico, the Gold Springs gold
project situated along the border between Utah and Nevada and the
San Antonio project in Sonora, Mexico.
Certain statements contained herein constitute "forward-looking
statements". Forward-looking statements look into the future and
provide an opinion as to the effect of certain events and trends on
the business. Forward-looking statements may include words such as
"will", "would", "plans", "intends" and similar expressions. These
statements include, but are not limited to, statements regarding
the continued advancement of the Canasta Dorada property and
regarding the possibility of Newco going public. These
forward-looking statements are based on current expectations and
entail various risks and uncertainties. Actual results may
materially differ from expectations, if known and unknown risks or
uncertainties affect our business, or if our estimates or
assumptions prove inaccurate. Factors that could cause results or
events to differ materially from current expectations expressed or
implied by the forward-looking statements, include, but are not
limited to, the effect of capital market conditions and other
factors on capital availability and the ability to complete a
public offering if at all; availability of sufficient financing to
fund planned or further required work in a timely manner and on
acceptable terms; changes in project parameters as plans continue
to be refined and other risks more fully described in the Company's
Management Discussion & Analysis of Financial Position and
Results of Operations, which is available on SEDAR at
www.sedar.com. Readers are cautioned not to place undue reliance on
the forward-looking statements contained in this press release.
Except as required by law, HDG assumes no obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or any other reason.
Neither the 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 release.
Contacts: High Desert Gold Corporation Richard Doran Executive
Vice President (303) 584-0608 (303) 758-2063 (FAX)
rdoran@highdesertgoldcorp.com
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