|August 02, 2007|
Energold Announces Sale Of The La Parcela Concession
|Energold Drilling Corp. ("Energold") is pleased to announce that the Board has approved a binding Letter Agreement dated June 29, 2007 with a Canadian-controlled private corporation ("CCPC") for consideration of CDN$2.0 million that includes the transfer of all its rights and obligations in the La Parcela Concession in the Dominican Republic. As part of this purchase Agreement, Energold has agreed to provide the CCPC non-exclusive access to its Dominican Republic intellectual portfolio, including access to its property data base of mineral properties in the Dominican Republic until June 30, 2009. Energold has also agreed to provide technical assistance and support services to the CCPC, at market rates, for field exploration and drilling services. |
In a parallel agreement with CCPC, Energold has granted a one year-option to acquire all of the rights and obligations for three additional concessions for further consideration of CDN$50,000 each plus costs. With these transactions, Energold has begun the process of divesting its non-core assets in order to realize their substantial underlying value and to simplify Energold's investment profile as a focused provider of drilling services. The concessions involved in the sale to CCPC represent only a portion of Energold's portfolio of projects in the Dominican Republic.
The two million dollars CDN from the sale has been placed in an interest bearing trust account for Energold. Energold has agreed to invest the proceeds from this sale in an initial public offering to be undertaken by that CCPC, provided that such an offering takes place during the fall of 2007; failing this, the funds are to be released to Energold. As a result of this transaction, Energold expects to record a significant pre-tax income gain during the second quarter.
Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company that services the mining industry. Energold also holds 6.6 million shares in silver miner IMPACT and a portfolio of exploration projects in the Dominican Republic.
On behalf of the Directors of Energold Drilling Corp.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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