Threegold Resources Inc.: Drill Rig has Mobilized to the Lemieux Dome Project and Shares for Debt Settlement With Dianor (2007-10-16)
VAL-D'OR, QUEBEC, CANADA--(Marketwire - Oct. 16, 2007) - Threegold Resources Inc. (TSX VENTURE:THG) is pleased to announce that the drill rig has mobilized to the Lemieux Dome Project and that diamond drilling should begin in the coming days. The company also wish to announce that it has issued an aggregate of 2,241,490 common shares to Dianor Resources Inc. (TSX VENTURE:DOR) in payment of debts in an aggregate amount of $920,847.
The drill rig has mobilized to the property and drilling should begin shortly. The planned 7,000 metre - 31 hole diamond drilling program is designed to intersect mineralization present on surface at 11 distinct locations.
The first target to be tested is the Big Pioneer fault structure that has been traced on surface for approximately one (1) kilometer. The structure is outlined by a series of parallel mineralized zones with quartz veining that assayed as high as 4.16 % Cu, 8.16% Zn and 41 g/t Ag (press release March 29, 2007) in individual trench grab samples. The planned 12 hole program from 6 set-ups is planned to intersect the structure at the -100 and -150 metre levels over the entire one kilometre structure.
The program will also test the high-grade copper obtained in a series of surface grab samples in trench 6, now termed the Gasse Showing (press release March 29, 2007, trench 6) with 2 parallel holes. A series of two diamond drill holes are also planned for the Pardiac, the Brandy South, the Eagle-Gaspesie mineralized occurrences and at the former Federal Mine site. Additional diamond drill holes are also planned at Elizabeth and in newly discovered zones on the Vital Property (this press release) and Gasse - Lemieux (results pending).
Threegold issued 1,363,253 common shares to Dianor at a deemed issue price of $0.45 per share, in payment of a debt in the amount of $613,464. The debt resulted from the retraction by Dianor of 613,464 Series A preferred shares of Threegold at their paid-up amount of $1.00 per share. The preferred shares were issued by Threegold at a deemed price of $1.00 per share in payment for mining exploration properties transferred by Dianor to Threegold. Threegold also issued 878,237 shares to Dianor at a deemed price of $0.35 per share in payment of a debt in the amount of $307,383, representing amounts advanced by Dianor to Threegold to defray its start-up costs.
The deemed issue prices of the shares is greater than the market price of Threegold's shares on the TSX Venture Exchange at the time Threegold and Dianor agreed to repayment of the debt.
Under applicable securities legislation and the policies of the TSX Venture Exchange, the common shares issued pursuant to the private placement are subject to a hold period expiring on February 12, 2008.
As a result of the share issuance, there are 23,647,190 common shares of Threegold issued and outstanding.
Antoine Fournier, P. Geo. M. Sc. and president of the company is responsible for the technical content of this press release.
For further information, please contact:
Antoine Fournier, P.Geo.
Threegold Resources Inc
Tel.: (819) 825-3883
Fax: (819) 825-7545
Octavio Soares, FCA
Chief Financial Officer
Threegold Resources Inc
Tel.: (418) 999-8811
Fax: (418) 652-8149
S.D.N.L. Financial Communications
Tel: (514) 380-5610
You can also visit our website: www.threegold.ca
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
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