LMA BUYS 4 GOLD MINES IN PRODUCTION!La Mancha to buy four gold mines; to raise $100-million
La Mancha Resources Inc (TSX-V:LMA)
Shares Issued 19,416,562
Last Close 1/9/2006 $1.40
Tuesday January 10 2006 - News Release
Mr. Walter Berukoff reports
LA MANCHA TO ACQUIRE FOUR GOLD MINES IN AUSTRALIA, SUDAN, AND IVORY COAST
La Mancha Resources Inc. associate Red Lion Management Ltd. has been selected by a French energy multinational as the preferred purchaser of all the assets comprising the vendor's gold business unit. The board of directors of La Mancha has approved an agreement with Red Lion, a related party, granting La Mancha the right to acquire the assets on terms to be finalized, which will include payment in common shares of La Mancha to Red Lion. The gold business being acquired consists of major interests in four mines: two in Australia, one in Sudan, and one in Ivory Coast, plus substantial exploration tenements in all three countries. Attributable gold production exceeded 100,000 ounces for both 2004 and 2005. La Mancha will purchase the assets as a going concern and retain the key management and personnel currently operating these mines and directing the exploration programs within the respective countries.
Red Lion and RP Capital Group, Ocean Equities Ltd., and other members of a banking syndicate are raising in excess of $100-million in a mix of debt and equity financing to provide for the completion of the transaction.
The agreement is subject to the completion of satisfactory due diligence, completion of a definitive sale and purchase agreement, approvals by the boards of directors of vendor and purchaser, approval by the disinterested shareholders of La Mancha, and acceptance by regulatory authorities. Because of a confidentiality agreement, La Mancha is not permitted to provide complete technical details of the assets at this time. In due course, La Mancha will provide National Instrument 43-101-compliant information concerning the technical and financial aspects of the assets, as well as complete details of the transaction.
© 2006 Canjex Publishing Ltd.