Stocks & Investing
Stocks and Investing
Stocks and Investing
Sat, October 31, 2009
Fri, October 30, 2009 
MONTREAL, QUEBEC--(Marketwire - Oct. 30, 2009) - Glen Eagle Resources Inc. (TSX VENTURE:GER) ("Glen Eagle" or the "Company") Glen Eagle is pleased to announce the acquisition of the Gaz Gold mine located in South Africa from Barak Mineral, a privately owned company. Glen Eagle is currently reviewing other projects near production and can clearly state that Gaz Gold is one of many more acquisitions soon to come.
Gaz Gold mine was an underground mine in operation for 18 years from 1975 to 1993. The mine dumps are known to contain approximately 18 million tons of ore, grading on average 3,0 grams per ton gold based on the data available at the Department of Minerals and Energy (DME) of South Africa. The dumps are easily accessible with nearby milling facilities capable of processing 2000 tons/day once the mill is fully operational. Electricity, water and other infrastructures are readily available. Glen Eagle objective is to commence immediately a 43-101 compliant due diligence on the processing of the tailings and arrangements are being made to have a qualified geologist on the property next week. Commercial production is expected to commence within three months following the completion of the study. Barak Mineral will be the operator of the mining and processing operations.
Note: The technical data presented in the above paragraph concerning grade and tonnage are considered historical and are not compliant with the current international reporting standards presently accepted. The data is presented only as an indication of the potential of the property and the qualified person has not yet done sufficient field work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon. The feasibility study has not yet been completed to determine the production cost and there is no certainty the proposed operation will be economically viable.
Based on the Purchase Agreement, the interest in the Gaz Gold property will be divided 50/50 between Barak Mineral Resources (50%), and a Joint Venture (50%) comprised of Glen Eagle Resources (26%) and its financial partner PPH Holdings (24%) whereby Glen Eagle has an option with PPH Holdings to increased its stake to 40% should the option be exercised.
The government of South Africa and a local community trust fund will receive a 26% interest of the net profits as currently required under mining policies in South Africa.
PPH Holdings has already disbursed to Barak Mineral the sum of $300,000 and Glen Eagle will issue 1,500,000 shares once the due diligence process has been completed. Under the purchase agreement, both Glen Eagle and PPH Holdings will be responsible for financing the development of the Gaz Gold project as part of the cost to acquire the property. Glen Eagle expects to have little share dilution in the process.
PPH will receive an 8% all cash commission based on the cost incurred by Glen Eagle in the transaction. The technical content presented herein has been reviewed by Benoit M Violette P.Geo. geologist and a qualified person according to the NI 43-101 disclosing standards.
"Neither 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"
