Science & Technology
Science and Technology
Science and Technology
Thu, July 9, 2009
Wed, July 8, 2009 Luiri Gold Limited: Luiri Gold Completes First Placement for C$1.5 Million and Sets Date for Shareholder Meeting
TORONTO, CANADA--(Marketwire - July 8, 2009) - Luiri Gold Limited (TSX VENTURE:LGL) is pleased to announce that is has completed the first phase of the investment by Lachlan Star for 12,416,101 shares at CDN $0.12 for gross proceeds of CDN $1,489,932.10. Lachlan Star elected to convert the Australian $300,000.00 loan as part of this first placement. Lachlan Star, an Australian listed resource company, recently entered into an Agreement for the investment of Australian $3,000,000.00 in Luiri Gold (see Press Release June 8, 2009) and to dual list on the Australian stock exchange ("ASX"). According to the Agreement between Luiri Gold and Lachlan Star, the latter will subscribe to a further 9,476,399 shares at the same price for gross proceeds of CDN $1,137,167.90 on Luiri Gold receiving shareholder approval. This will result in Lachlan Star holding approximately 31% of the issued shares of Luiri Gold.
Note that there are no finder's fees or warrants in connection with the private placements. The shares are subject to a statutory hold period of four months from the date of closing. The private placement has received provisional TSX Venture Exchange approval.
The key focus of the funds from the Lachlan Star investment, together with the funds raised during the listing on the ASX will be on completing a feasibility study on the current resource base at the Luiri Hill Project in the next year, further resource expansion drilling, exploration and corporate costs. Luiri Gold is currently putting together a team to run the feasibility study and has recently asked for tenders to carry out infill drilling at the Matala and Dunrobin deposits.
Luiri Gold has sent out an Information Circular which has also been filed on Sedar and a form of proxy in connection with management's solicitation of proxies for use at the special meeting of the Company to be held on July 28, 2009.
The Board and Executive Management of Luiri Gold are fully supportive of the investment by Lachlan Star and have agreed to vote all their personal shareholding in Luiri Gold in favor of the resolution which amounts to approximately 5% of the shares on issue.
On receiving shareholder approval for the second placement with Lachlan Star, Luiri Gold will then proceed with a dual listing on the ASX where Lachlan Star will arrange additional funding of Australian $2,000,000.00 by third parties in Luiri Gold on a best endeavors basis.
About Luiri Gold
Luiri Gold is a gold focused company with a strategy of creating shareholder value through expanding into a geographically diversified gold resource company with assets potentially ranging from producing mines and near term production to exploration properties in Africa. The current focus is at Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, which holds mineral tenements within southern-central Zambia covering approximately 1,200km2 of highly prospective exploration ground focused on the Dunrobin and Matala gold deposits. The Luiri Hill Project is situated approximately 120km west-northwest of the Zambian capital of Lusaka in Zambia's Central Province. Access to the Project area is by a newly-upgraded paved road from Lusaka.
The current Mineral Resource at the Luiri Hill Project includes 656,000 ounces gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category (reported in Press Release April 15, 2008).
In addition to the substantial gold resources on the properties controlled by Luiri, the properties also host the large, prominently outcropping hematitic Nambala iron deposit. A review by Coffey Mining indicated that on part of the mineralized body there exists the 'mineral potential' of between 100 and 300 million tonnes of iron at grades of 55-60% Fe. Interpretation of the regional geology indicates that the iron contained in this deposit could be several times larger than this figure. However, there are a number of logistical issues relating to the distance from the project to the coast. Note that the potential quantity and grade is conceptual in nature, and there is insufficient exploration to define a mineral resource and therefore it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Luiri Gold exploration programs and resource calculations are carried out under the supervision of Mr. Michael Sperinck, Member of AUSMIM. Mr. Sperinck is a qualified person (as defined by National Instrument 43-101) with more than 25 years of experience in the mining industry.
About Lachlan Star
Lachlan Star Limited is an emerging minerals exploration and development company headquartered in Perth, Western Australia. The company is focused on acquiring and developing assets within the gold, copper and bulk commodities sectors within Australia and overseas. The company has a board of directors and management team with an impressive track record of advancing resource projects through to production. Lachlan Star's current projects are in Australia and include the Bushranger copper and gold project in New South Wales and the Princhester magnesite deposit in Queensland.
ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED
Michael Sperinck, President and CEO
Ted Grobicki, Chairman
This press release contains forward-looking information which involves risks and uncertainties. Forward looking information represents management's current views and these may change significantly as new information comes to hand.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
