Douglas Lake Acquires 100% Interest in 4 New Prope
VANCOUVER, BRITISH COLUMBIA, Sep 22, 2010 (Marketwire via COMTEX) --Douglas Lake Minerals Inc. (the "Company" or "Douglas Lake")/quotes/comstock/11k!dlkm()() is very pleased to announce that the Company has recentlyreceived approval from its Board of Directors to both enter into andimmediately close upon the terms and conditions of a certain MineralProperty Acquisition Agreement (the "Acquisition Agreement"), with IPPGold Ltd. ("IPP Gold"), to acquire a 100% interest in four prospectinglicences (the "PLs"), totaling approximately 800 square kilometres,located in the Handeni District of Tanzania and which are owned orcontrolled by IPP Gold and its affiliates.
Harp Sangha, CEO of the Company, stated: "This new Acquisition Agreementwith IPP Gold represents a significant step forward for the Company.Along with our new partners at IPP Gold, we will map out our newstrategy and course of action over the coming weeks and months. TheHandeni District has become alive with activity since the extraordinarydrilling results from Canaco Resources have placed this region on theworld stage. We plan to focus our energy and resources on theexploration and potential development of this new acquisition. Our aimis to direct Douglas Lake down a path towards success."
On September 13, 2010 Canaco announced significant new explorationdevelopments including the identification of important new paralleltrends of gold mineralization and discovery of a new mineralized zonefive kilometres W/NW of the Magambazi Gold Discovery. Early results fromthe regional exploration on the Handeni Gold Trend indicate the workprogram has already made significant progress in identifying new goldtargets and upgrading the potential of previously identified gold zones.Over the past month, the regional program has included over 3000 metresof Reverse Circulation ("RC") drilling, approximately 10,000 metres ofreconnaissance Rotary Air Blast ("RAB") drilling, a detailed airbornesurvey, detailed mapping of some of the key target areas defined to dateand geochemical interpretation. The Handeni Gold trend is nowrecognized as consisting of two, parallel gold trends with a combinedstrike length of over 15 kilometres ().
In April 2010, TD Newcrest, A Division of TD Securities, initiatedcoverage of Canaco Resources and announced a speculative buyrecommendation with a $1.25 target price. They now believe that $175/ozis an appropriate resource multiple given the forecast high grade/lowcost nature of the ounces discovered to date by Canaco. They haverevised their target price to $6 per share and maintain theirspeculative buy rating.
The closing of the Acquisition Agreement
In accordance with the closing today of the Acquisition Agreement IPPGold has now become a major stakeholder in the Company. Pursuant to theterms of the Acquisition Agreement the Company has now issued133,333,333 restricted shares of common stock to IPP Gold in exchangefor 100% interest in the four PLs of the new Handeni Project, with nofurther payments in shares or cash required. This acquisition of thesefour PLs as a whole represents the largest land position in the HandeniDistrict, and the boundary area is geologically contiguous to Canaco'sMagambazi gold project.
In addition, and accordance with the closing of the AcquisitionAgreement, the Board of Directors of the Company has also accepted theconsent to act as both a director and as the Chairman of the Companyfrom Reginald Mengi, together with the consents to act as directors ofthe Company from each of Reyno Scheepers and Douglas Boateng. Mr. Mengiwill replace the Honorable Joseph Rugumyamheto as the Company's Chairmanand Mr. Rugumyamheto will continue to serve as a director of theCompany.
The Company's new directors
About Reginald Mengi
Mr. Reginald Mengi is the Chairman and owner of IPP Resources. He alsochairs IPP Ltd., one of the largest private sector holding companies inTanzania. Mr. Mengi commenced IPP Ltd.'s business in the mid 1980'smanufacturing ball point pens. Today the IPP group of companies isengaged in various areas including bottling of Coca Cola products,drinking water, manufacturing and bottling of drinks and spirits, miningof minerals and gemstones, gemstone cutting, lapidary and media.
Until 1985, Mr. Mengi also worked as a Chartered Accountant for Coopers& Lybrand Tanzania where he served in the role as Chairman andManaging Partner and led auditing and consultancy teams and participatedin the establishment of companies and institutions.
About Reyno Scheepers
Dr. Reyno Scheepers' involvement with the mining industry stretches for aperiod of 22 years. He started off as a researcher at the Fuel ResearchInstitute (CSIR) of South Africa where he gained experience in thecomposition and characteristics of various South African coal fields.This was followed by a two year period as a geologist at a South Africangold mine where he gained experience in underground geology,underground and surface exploration and gold exploration projectplanning. He then joined the University of Stellenbosch where he became aprofessor in petrology/mineralogy in 1999.
Since 1995 Dr. Scheepers directed his efforts towards the investigationof gemstone deposits covering alluvial and kimberlitic diamond depositsin South Africa, the DRC and in Tanzania. One of his major achievementsin Tanzania was the investigation of the geology and technical aspectsof the Merelani tanzanite deposit which eventually led to the successfullisting of the first colored gemstone company on the JSE.
Professor Scheepers is also closely involved in the application anddevelopment of geochemical analytical techniques and was in charge ofthe running of an XRF laboratory, an ICP-AES laboratory and a microthermometric laboratory. He participated in the development ofinternational geochemical reference standards and completed numerouschallenging analytical problems for the industry over the years.
Dr. Scheepers' interest in providing small scale miners with thenecessary skills to conduct safe and effective mining led to theestablishment of the Gemstone Research Centre at Stellenbosch Universityand currently the Unit for Gemstone Geology ("UGG"). The UGG is acollaborative training and research unit between Free State and Dar esSalaam Universities through which research on gemstone deposits iscurrently conducted.
Dr. Scheepers received his B.Sc. (Hons), Cum Laude in 1979, his M.Sc,Cum Laude in 1982 and his PhD in 1990 from the University ofStellenbosch.
About Douglas Boateng