TORONTO, ONTARIO--(Marketwire - March 30, 2012) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") today reports the transaction with Pioneer Metals Unlimited Liability Company, a subsidiary of Barrick Gold Corporation ("Barrick"), to acquire the Prosperity North Project in the Clinton Mining Division of British Columbia (previously announced on February 1, 2012) is now complete. The Company issued 5-year warrants to Barrick to purchase up to 1.5 million shares of the Company at the price of $1.00 per share. Prior to the sale of the property, Barrick held 4,000,000 common shares (7.95%) of the Company's outstanding 50,327,535 common shares. On exercise of the warrants, Barrick will hold 5,500,000 (10.6%) of the common shares of the Company. The warrants and underlying shares are subject to a hold period of four months and one day from the date of issuance. The warrants were acquired for the consideration of $0.02 Cdn per warrant.
The transaction was subject to the approval of the TSX Venture Exchange, which approval was received on March 6, 2012.
Barrick acquired the warrants for investment purposes and has no present intention to acquire further securities of Auriga, although it may in the future acquire or dispose of other securities of Auriga, through the market, privately or otherwise, as circumstances or market conditions warrant.
To obtain a copy of the Early Warning Report, please contact Barrick Gold Corporation Brookfield Place, Canada Trust Tower, Suite 3700, 161 Bay Street, P.O. Box 212, Toronto Ontario, Canada, M5J 2S1, Attn: General Counsel, Phone Number (416) 861-9911.
Richard Sutcliffe, Auriga Gold's President and CEO commented, "We are pleased with the exploration opportunity that Prosperity North represents, and by the continued support of our largest shareholder. Prosperity North is a significant property both in size and geological profile and offers a large regional gold-copper porphyry style target."
The Prosperity North Property is contiguous with Taseko Mines Limited's ("Taseko's") Prosperity copper-gold deposit in the Williams Lake area of British Columbia. Taseko's Prosperity deposit is a gold-copper porphyry with a 1.0 billion tonne Measured and Indicated Resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold and is one of the largest undeveloped copper-gold deposits in Canada. Auriga's Prosperity North Property covers a similar geological trend to the Prosperity deposit and contains a largely untested Induced Polarization (IP) anomaly that may be consistent with a porphyry-style copper deposit. There is no guarantee that the Taseko Prosperity deposit is indicative of the mineralization that may be discovered on the Prosperity North Property.
About Auriga Gold
Auriga Gold Corp. is a Canadian mine development and exploration company focused on developing the Puffy Lake Mine and expanding gold resources on its Puffy Lake and Nokomis deposits (the "Maverick Gold Project"). The Company plans to work toward upgrading and expanding the resources at the Maverick Gold Project, initiate test mining, complete feasibility studies of mineral reserves, and bring the Puffy Lake Mine back into production. The Puffy Lake Mine includes a 1,000 tpd flotation mill, a developed underground ramp to 135 metres depth, is fully road accessible and close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon Greenstone Belt of Central Manitoba.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the closing of the second tranche of the private placement financing, use of proceeds, the future develop the Maverick Gold property and move towards targeted open pit test mining. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in the Company's Management's Discussion and Analysis for the Three and Six Months ended September 30, 2011, available on www.sedar.com. Although Auriga Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Auriga Gold does not undertake to update any forward-looking information, except in accordance with applicable securities laws.