Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
TORONTO, ONTARIO–(Marketwire – June 1, 2012) –
Takara Resources Inc. (“Takara” or the “Company”) (TSX VENTURE:TKK) announces that it has appointed Messrs. John Cullen and James Fairbairn to the board of directors of Takara, in connection with the proposed acquisition of Kutu Gold Inc. (“Kutu”), a private company having various rights to gold projects in Guyana, South America.
Mr. John Cullen is a co-founder of CGX Resources Inc. (“CGX”) (TSX VENTURE:OYL), CGX Energy Inc.’s wholly-owned subsidiary that holds CGX’s petroleum prospecting licenses. Mr. Cullen has 30 years experience in public company financing, corporate / capital structuring and management. Following 15 years in the Canadian investment brokerage industry, including 10 years with Burns Fry, John founded a number of public companies including CGX. He is a current director of Hy Lake Gold Inc., MAG Copper Limited, Southeast Asia Mining Corp. and Victory Gold Mines Inc.
Mr. James (Jim) Fairbairn is a Chartered Accountant with over 20 years experience with publicly-traded companies and was CGX’s Chief Financial Officer from incorporation to the end of 2011. He currently holds the position Director, Corporate Affairs at CGX, responsible for social responsibility projects in Guyana. Mr. Fairbairn also sits on the board of directors of Canada Lithium Corp. and of Trelawney Mining and Exploration Inc., a company that is the subject of a recent offer by IAMGOLD Corporation to purchase its outstanding shares in consideration for $3.30 per share, cash.
Takara shall issue up to 60,000,000 common shares to acquire all of the issued and outstanding common shares of Kutu, which is contemplated to have, at closing, approximately $400,000 in cash, and an option to acquire a 100% interest (subject to a 2% net smelter return royalty) in the Kutu Gold Project. The Kutu Gold Project is located in the Mining District No. 8 in the Republic of Guyana, and comprises 23 Medium Scale Prospecting and Mining Permits. In order to maintain the option in good standing with the underlying optionor, Kutu shall: (i) pay $100,000 cash, incur $50,000 in expenditures, and issue 200,000 common shares on or before March 8, 2013; (ii) pay $150,000 cash, incur $150,000 in expenditures, and issue 250,000 common shares on or before March 8, 2014; and (iii) incur $150,000 in expenditures and issue 250,000 common shares prior to March 8, 2015.
Mr. John McConnell and Mr. Marty Rendall have tendered their resignations as board members and the Company sincerely thanks these directors for the time and commitment they gave to Takara during the time that they served on the board of directors.
The acquisition of Kutu is subject to the approval of the TSX Venture Exchange and to other standard conditions normally inherent in acquisitions as described hereinabove.
About Takara
Takara Resources Inc. is a Canadian based gold company focused on exploring and developing its Guyana gold assets in the Guiana Shield that are held within a wholly-owned subsidiary, StrataGold Guyana Inc., namely: (i) the Tassawini Gold Project (100% interest); and (ii) the Arakaka Project (100% interest).
The Tassawini Gold Project hosts a National Instrument (“NI”) 43-101 compliant mineral resource estimate (disclosed in a press release dated March 18, 2010) consisting of 437,000 ounces gold in an indicated resource of 10,799,000 tonnes having an average grade of 1.3 g/t, and 62,000 ounces gold in an inferred resource of 1,926,000 tonnes having an average grade of 1.0 g/t., for a total resource of approximately half a million ounces gold.
Statement Regarding Forward Looking Information
Certain information contained in this news release, including any information relating to the proposed transaction and Takara’s future financial or operating performance may be deemed “forward-looking”. These statements relate to future events or future performance and reflect Takara’s expectations regarding the transaction, and the future growth, results of exploration, business prospects and opportunities of Takara. These forward-looking statements are subject to a variety of risks and uncertainties that are identified and disclosed. Although Takara believes that the forward-looking information contained in this news release are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Takara expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
