Dagilev Capital and Lundin Mining Close Salave Gold Property Acquisition
15 April 2010 - 3:52AM
Marketwired
Dagilev Capital Corp. (TSX VENTURE: DCC.P) ("Dagilev" or the
"Company") is pleased to announce that it has closed the
acquisition of a 100% interest in the Salave Gold Deposit from
Lundin Mining Corp. (TSX: LUN)(OMX: LUMI) and other parties (as
previously disclosed in news releases dated February 11 and March
18, 2010). TSX Venture Exchange has approved the Salave acquisition
as Dagilev's qualifying transaction.
The company also announces that it will be renamed Astur Gold
Corp. subject to shareholder approval at the Annual General Meeting
on May 31, 2010.
The Salave property is comprised of five mineral exploitation
concessions covering an area of 433 hectares. The Salave property
is 100% owned by Exploraciones Mineras del Cantabrico S.A ("EMC") a
Spanish company and now a wholly owned subsidiary of Dagilev. The
property is subject to royalties due to a third party including a
series of staged payments and a 5% net smelter return royalty on
gold produced and sold when cumulative gold production exceeds
800,000 ozs. Dagilev may exercise an option to reduce the royalty
from 5% to 2.5% by paying the royalty holder $5,000,000.
Dagilev engaged Scott Wilson Roscoe Postle Associates Inc. of
Toronto, Ontario to complete an updated NI 43-101 technical report.
Brian McEwen, P.Geol. is a qualified person under the definition in
NI 43-101. Mr. McEwen completed a site visit in December 2009 and
has reviewed the contents of this news release.
In August 2005, the Regional Government of Asturias halted
open-pit project development of Salave due to the introduction of
certain zoning legislation. Immediately after, legal proceedings
were commenced by EMC against the government seeking reversal of
the decision or monetary compensation. The legal proceedings are
on-going.
Further details of the Company's updated Salave 43-101 will be
provided shortly.
Transaction Terms
Dagilev has acquired all of the issued and outstanding
securities of EMC in consideration for EUR500,000 and the issuance
of 5,296,688 common shares to Lundin, plus EUR600,000 to third
parties. Lundin will own 19.52% of the 27,136,689 Dagilev shares
outstanding upon the completion of the transaction. In addition,
Dagilev is to pay Lundin EUR20,000,000 within 180 days of receipt
by EMC of all necessary or desirable permits, licenses and
approvals from all appropriate regulatory bodies and governmental
authorities to allow EMC to construct and operate an open pit mine
on the property.
The agreement also includes certain other terms relating to the
current legal proceedings initiated by EMC against the government
of Asturias, Spain, in connection with the property.
Dagilev and Lundin have agreed that any judgments or monies
awarded to EMC as a result of the litigation will be aggregated and
shared 50% by Lundin and 50% by EMC, after a deduction of the
upfront payment as well as litigation and court related costs
incurred by Dagilev between April 13, 2010 and the time of
settlement or final judgment in the lawsuit.
Dagilev has also issued 500,000 common shares to a third party
in consideration for that party agreeing to amend an agreement in
respect of the Salave property. In addition, the Company has
entered into a bridge loan for an aggregate of $850,000.
After closing of the transactions, Dagilev has 27,136,689 shares
outstanding with no options or warrants issued.
Haywood Securities Inc. acted as financial adviser to
Dagilev.
Concurrently with closing of the acquisition, Mr. John Reynolds
and Mr. Paul Conibear were appointed to the Board of Directors of
the Company and Mr. David Doherty resigned as a director.
Paul Conibear - Director
Mr. Conibear is a Professional Engineer and has over 25 years of
experience in heavy industrial and mining investments in North
America, Africa, and South America. He has 18 years experience in
project and construction management of a diverse range of minerals
projects including base and precious metal, coal and potash
projects gained while working with Fluor Daniel Wright and
subsequently the Simons Mining Group (AMEC). Mr. Conibear joined
the Lundin Group in 1999 and became President of Tenke Mining Corp.
until its merger with Lundin Mining Corp. in 2007. He has been an
officer of Lundin Mining Corp. since July of 2007 and is currently
Senior Vice President, Corporate Development of Lundin Mining
Corp.
Honourable John D. Reynolds, P.C.- Director
The Honourable John D. Reynolds career includes substantial
experience in venture capital development, resource sector
development and elected political office, both federal and
provincial.The Hon. John D. Reynolds served as a Member of
Parliament of Canada, 1972- 1977 and 1997-2006 and also as leader
of Her Majesty's official opposition. The Hon. John D. Reynolds
also served as co-chair of the successful national Conservative
Party campaign for the January 23, 2006 federal election, in which
Stephen Harper was elected the Prime Minister of Canada. The Hon.
John D. Reynolds was speaker of the British Columbia legislature as
well as Minister of the Environment, in which he served from
1983-1991.
The Hon. John D. Reynolds career in the private sector has
included directorships on the boards of numerous public companies,
including International Corona Resources, Calibre Mining Corp.,
Oriel Resources, Rusoro Mining Ltd., and Terrane Metals Corp. The
Hon. John D. Reynolds was appointed as a member of the Queen's
Privy Council for Canada on February 6, 2006. In March 2006, he was
appointed as a Senior Strategic Advisor to Lang Michener law firm
in Vancouver.
ON BEHALF OF THE BOARD
Cary Pinkowski, Chief Executive Officer and Director
The TSXV has in no way passed upon the merits of this
transaction and has neither approved nor disapproved the contents
of this press release.
Contacts: Dagilev Capital Corp. Cary Pinkowski 604-694-1600
cp@cpcapital.ca Dagilev Capital Corp. #300-1055 West Hastings
Street, Vancouver, B.C., V6E 2E9
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