The Directors of D'Aguilar Gold Limited (D'Aguilar) are pleased to provide the following update to the market regarding the Group's activities.
Execution of Agreement for Scrip-based Take-over of Ridge Exploration By Coltstar Ventures Inc
D'Aguilar and its 86% owned iron and titanium focused subsidiary, Ridge Exploration Pty Ltd (Ridge) are pleased to advise that all parties have now executed the Share Purchase Agreement for the scrip based take-over of Ridge Exploration by TSX.V-listed Canadian company Coltstar Ventures Inc (Coltstar, TSX.V:CTR).
Under the Share Purchase Agreement, Coltstar will acquire 100% of the issued shares of Ridge, in consideration for the issue of 10 million new, fully-paid shares in Coltstar to the Ridge shareholders. D'Aguilar will appoint a Director to the Coltstar Board, and will continue to provide managerial and administrative support to Ridge on commercial terms. The parties are currently expediting the appointment of a Chief Operating Officer for Ridge to lead the further exploration and metallurgical programs.
D'Aguilar and Coltstar are now progressing through the due diligence and regulatory approval stage of the transaction, and D'Aguilar will advise the market on the completion of each of these milestones.
D'Aguilars Investment Portfolio
Following completion of this transaction, D'Aguilar will hold approximately 8.6 million shares in Coltstar, valuing the investment at approximately A$8.0 million dollars based on the current Coltstar price of CDN$0.85.
This investment will also join D'Aguilars other existing listed resource company investments in Burkina Faso gold explorer Mt Isa Metals (A$9.5 million, based on 50 million shares at $0.19) and Solomon Island and Queensland gold explorer Solomon Gold plc (A$3.2 million, based on 35.2 million shares at GBP0.053).
Accordingly, D'Aguilar will soon have asset backing in the form of international exchange-listed investments in excess of A$20 million based on current prices.
D'Aguilar's Corporate Pipeline
In addition to the investments outlined above, D'Aguilar is currently finalising its plans for the impending IPO of AusNiCo Limited, in which it will retain a significant investment. The IPO value of this retained holding will approximate $13 million. D'Aguilar will have two representatives on the Board of AusNiCo, including the Chairman.
D'Aguilar has also commenced work on the Q4 2010 IPO of gold explorer, Navaho Gold, in which it will also retain a significant holding after the float, together with two Board representatives including the Chairman. Navaho Gold is headed by ex-BHP exploration management chief Mark Dugmore, and is currently assembling a highly-prospective gold portfolio within the 200m oz Carlin / Battle Mountain / Eureka trends in Nevada USA, and the Northern Bowen Basin and Texas Block in Queensland, Australia.
In addition, D'Aguilar is currently assembling large-scale unconventional gas exploration assets in an energy-focussed subsidiary. Mr Phil McNamara has recently been appointed as the CEO of this company, and will oversee the seed capital raising and IPO raising and ASX listing process. Mr McNamara was formerly Managing Director of Waratah Coal and a Director of Mr Clive Palmer's Resource House. He has a long and successful history in large-scale resource projects and infrastructure development planning and approval progression.
D'Aguilar's subsidiary, Barlyne Mining will soon commence drill testing of outcropping extensive copper gold molybdenum porphyry mineralisation in the Great Blackall area north of and adjoining Aussie Q Resources Limited's Whitewash and Kiwi Carpet project areas.
DGR Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
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