High Desert Gold Purchases Batamote Concessions in Sonora, Mexico
February 07 2011 - 7:30AM
Marketwired
High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:
HDG)(PINK SHEETS: HDGCF) announced today that it has purchased the
Batamote concessions that were originally staked and controlled by
Vancouver-based TUMI Resources Limited ("TUMI") and its Mexican
subsidiary, TMXI Resources S.A. ("TMXI"). The Batamote concessions
were previously optioned by HDG from TUMI in May, 2007. The
Batamote concessions form part of HDG's Canasta Dorada property
interests which also include the Basurero claims, on which the
majority of the HDG drilling was previously completed and two other
wholly owned concessions, one of which adjoins the El Chanate
concessions.
As announced in October, 2010 (see HDG PR10-16, October 7,
2010), HDG intends to transfer all of its interests in the Canasta
Dorada property, including the Batamote concessions, to a new
company whose Canadian parent will be the new private company,
Highvista Gold Corp. ("HVG"). The initial ownership of HVG will be
49% HDG and 51% Norvista Resources Corporation ("Norvista") and its
shareholders. Norvista funded HVG with US$1.5 million as
consideration and spent an additional US$250,000. for its 51%
share. The transfer of the Canasta Dorada property interests into
HVG is expected to be completed in the next several weeks. The
Company expects that its equity interest in HVG will be diluted
over time, as HVG raises additional capital. This affords the
Company the opportunity to advance the Canasta properties without
further expense to HDG or share dilution.
The Canasta properties are in an excellent location within the
Sonoran Gold Belt and are adjacent to Capital Gold Corporation's
1.5 million oz. gold-resource El Chanate gold mine.
Ralph Fitch, HDG President and CEO, noted that as previously
stated in an earlier press release, "I believe this is an excellent
opportunity for the Company and for our shareholders. HVG is being
led by several former members of the Castle Gold management team,
including Rick Adams as its CEO. 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 2010. HVG's immediate focus will be to drill extensions of the
mineralization already defined by HDG's earlier drill program. At
the same time this allows our management team to focus on advancing
the two very promising new gold projects in our portfolio, Gold
Springs in the US and San Antonio in Mexico."
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 Gold
Springs gold project situated along the border between Utah and
Nevada and the San Antonio project in Sonora, Mexico. The Company
recently completed a financing for gross proceeds of Cdn$3.0
million and is in the process of initiating drilling programs in
the next several weeks at San Antonio and at Gold Springs in early
spring.
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", "expects", "initiating",
"promising" and similar expressions. These statements include, but
are not limited to, statements regarding the continued advancement
of the Canasta Dorada, Gold Springs and San Antonio properties and
regarding the possibility of HVG raising additional capital. 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; 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@hdggold.com www.hdggold.com
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