|December 20, 2012|
Energold Drilling Enters Into Option Agreement for its Non-Core Dominican Republic Land Assets
|Energold Drilling Corp. (EGD: TSX.V) ("Energold" or "the Company" or "Energold Group"), a leading worldwide operator and manufacturer of mineral exploration and energy drilling rigs, has entered into an agreement with a third party whereby Energold has agreed to option out some of the Company's legacy, non-core land package in the Dominican Republic. The option agreement includes a multi-phased work program to be executed by Energold Drilling Corp. at market rates and to be paid for by the option holder. Management estimates the initial phase of the work program to be executed as part of the option agreement to be worth $800,000 over the course of the next 12 months with the potential for additional work thereafter.|
Pending the results of the work program, the third party can exercise, at its discretion, an option to acquire 100% of the land package in 12-18 months for a consideration of $1.6 million. Energold continuously seeks to monetize its non-core assets in an effort to allocate capital and resources towards the Company's core drilling business as it pursues its ongoing organic and external growth programs worldwide. Energold currently has its exploration assets recorded on its balance sheet at $1.586 million as of September 30, 2012.
About Energold Drilling Corp.
Energold Drilling Corp. is a leading global specialty drilling company that services the mining and energy, and manufacturing sectors in 22 countries globally. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to mine site operations for both metals and energy in addition to its established drill rig manufacturer, Dando. Energold also holds 6.98 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
For further information, please contact:
Steven Gold - Chief Financial Officer
(416) 648-4065 or via email at email@example.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.
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