VANCOUVER,
Dec. 6, 2011 /PRNewswire/ - Wesgold
Minerals Inc. (TSX-V: WSG) (the "Company") provides an update on
the status of the option to acquire up to a 51% interest in the
Cordoba Property from Minatura International LLC ("Minatura"),
which was previously announced on June 6,
2011.
The Company has been informed by Minatura that
three of the concession applications that make up part of the
Property have been granted and are now legal contracts. This has
been confirmed by Wesgold's Colombian legal counsel. However,
the applications in respect of those portions of the Cordoba
Property for which a NI 43-101 compliant technical report has been
prepared have not yet been converted. While Minatura has
advised the Company that it expects the remaining concessions to be
granted in the coming months, the Company has been informed that in
several speeches and interviews, including a conference organized
by the Colombian-Canadian Chamber of Commerce, the Colombian Mines
and Energy Minister ("Minister") has made statements that have
created some uncertainty about when, if ever, such key remaining
concessions will be granted. Minatura has assured the Company
that the Cordoba Property does not fall under the areas declared
"strategic" by the Colombian Mines and Energy Ministry and
therefore all concession applications will be granted in due
course.
The Company's option on the Cordoba Property is
conditional upon the Company having acquired an 11% interest in
shares of Minatura, which itself is conditional upon TSX-V
approval. The TSX-V has approved the acquisition of the 11%
interest subject to the Company completing the necessary
financing. The Company remains committed to the agreement with
Minatura on the Cordoba Property, however, in light of the recent
statements by the Minister regarding the grant of mining
concessions in Colombia, several
potential investors in the financing transaction have requested
that the proceeds of their investment be escrowed until the area of
the Cordoba Property that is the subject of the NI 43-101 report is
granted as a mining concession. The TSX-V's final approval of the
transactions with Minatura may be delayed depending on the amount
of the financing proceeds that are subject to the escrow and
whether the Company is able to obtain alternative sources of
financing on commercially reasonable terms.
About Wesgold Minerals
Wesgold Minerals Inc. is a Vancouver-based mineral exploration company
focused on the acquisition and exploration gold and copper projects
in Colombia. Wesgold recently
optioned from Minatura the Cordoba property, covering 25,790
hectares in the Department of Cordoba, Colombia, 200km north of the city of
Medellin.
WESGOLD MINERALS INC.
Per: "Simon
Ridgway"
Simon Ridgway, Chairman of the
Board
Neither the TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this news release.
Forward-looking Statements
This press release contains "forward-looking statements".
Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors which may cause actual
results, performance or achievements of the Company to be
materially different from any expectations expressed or implied by
the forward-looking statements. Forward-looking information in
this press release includes, but is not limited to, statements
regarding the expected timing for the grant of further concessions
in respect of the Cordoba Property, statements regarding the
Company's private placement financing and potential delays in
completion of the financing, statements regarding the grant of the
option on the Cordoba Property and the Company's acquisition of an
11% interest in Minatura. The forward-looking information disclosed
herein is based on a number of assumptions including, among other
things: that the information received by the Company regarding the
Minister's statements is correct, that the information provided by
Minatura regarding the expected timing for the grant of the
remaining concessions is correct, that the government of
Colombia will proceed in the way
suggested by the Minister and/or Minatura, that potential investors
in the financing transaction will require an escrow of the
financing proceeds and that the Company will complete the necessary
financing and acquire the 11% interest in Minatura. Readers are
cautioned not to place undue reliance on the forward-looking
statement, which is given as of the date it is expressed in this
press release, and, except as required by law, the Company assumes
no obligations to update or revise forward-looking information to
reflect new events or circumstances.
SOURCE Wesgold Minerals Inc.