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Mon, April 2, 2012
Fri, March 30, 2012 Mahdia Gold Corp. Provides Full Disclosure on White Creek Property Acquisition
March 30, 2012 11:41 ET
Mahdia Gold Corp. Provides Full Disclosure on White Creek Property Acquisition
TORONTO, ONTARIO--(Marketwire - March 30, 2012) - At the request of CNSX Markets Inc., and further to its news release of May 30th, 2011, announcing the acquisition of gold-bearing property in Guyana known as the White Creek property, Mahdia Gold Corp (CNSX:MGD) ("Mahdia" or the "Corporation"), wishes to provide more fulsome disclosure on the details of the acquisition. The Corporation was required to file a news release announcing the acquisition on May 9, 2011, but did not file a news release until May 30, 2011. In addition, the Corporation was required to file a Form 10 providing details on the acquisition. The Corporation will file the Form 10 and this news release concurrently.
Pursuant to an agreement made as of January 5, 2009, between the Corporation and Saceka Capital Corp. Ltd. (a company incorporated under the laws of the Turks and Caicos), the issuer purchased certain mineral rights (V-9/MP/000, V-10/MP/000, V-10/MP/001, V-11/MP/000, V-11/MP/001, V-11/MP/002, V-11/MP/003, V-11/MP/004, V-12/MP/000, V-12/MP/001, V-13/MP/000, V-13/MP/001, V-13/MP/002, V-14/MP/000, V-15/MP/000, W-44/001, W-54/002, W-59/000, W-63/000, W-63/001, W-63/002, W-63/003, W-63/004, W-63/006, all located in the White Creek area of Guyana, in addition to W-78/000, W-78/001, W-78/002, W-78/003, W-78/004, W-78/005, W-78/006, W-78/007, W-78/008, W-78/009, W-78/010, W-78/011, W-78/012, W-78/013, W-78/014, W-80/000, W-98/000, W-99/000, W-95/000, W-100/000, W-79/001, in a structured acquisition allowing for staged payments to the two individual vendors and a commitment to make annual payments to the Guyana Geology & Mines Commission for at a total cost of $700,000.
Mr. Alan Zaakir, the Chief Executive Officer of the Corporation, recognized the value of the White Creek property and secured the mineral rights to obtain a competitive advantage for the corporation, and paid for part of the consideration through a third party loan in the amount of $112,000. Mr. Zaakir acquired the claims on behalf of the Corporation and entered into an agreement with Saceka Capital Corp. as bare trustee for the Corporation for the following reasons: 1) in order to obtain the best price for the property; 2) to ensure sufficient funds to purchase the property. The White Creek transaction is an arm's length transaction and the price of the property was determined by negotiation with the vendors.
About Mahdia Gold Corp.
Mahdia is a Canadian based gold exploration and development company with interests in three gold bearing concessions in central Guyana, with the most advanced being the Omai property.
The Company's website is: [ www.mahdiagold.com ]. The website of the CNSX exchange is [ www.cnsx.ca ].
Forward-Looking Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.
