Ms. Jennifer Boyle of Takara reports
TAKARA AND GUYANA GOLDFIELDS SUBSIDIARY BECOME JOINT VENTURE PARTNERS ON THE BRL/ARAKAKA PROJECT IN GUYANA
Aranka Gold Inc., a wholly owned subsidiary of Guyana Goldfields Inc., has become Takara Resources Inc.'s joint venture partner on the BRL venture (now named the Arakaka joint venture) in Guyana, South America. Aranka recently purchased all of the interests in the Arakaka joint venture held by Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation.
The property portfolio comprising the Arakaka joint venture is subject to various underlying agreements, and is situated in the North West mining district of Guyana, in proximity to Takara's 100-per-cent-held Tassawini gold project. To date, the Arakaka joint venture has had approximately $16-million incurred in exploration expenditures by the former operators.
It is anticipated that an exploration program and budget will be proposed prior to the end of 2010, with a view to commencing activities early in 2011. Takara will then determine to finance its pro rata 29.90-per-cent interest or have its interest diluted.
The Arakaka joint venture continues to be governed by the underlying joint venture agreement of Sept. 27, 2005, which provides, among other things, a maximum $2-million on proposed programs and budgets, as well as the right for either party to define a specific project area for concentrated development -- whereby if specified, Aranka has the right to increase its interest by financing to feasibility (10 per cent) and financing to commercial production (10 per cent) on the specific project area. The agreement further provides that if either party's interest is reduced to less than 15 per cent, such interest converts to a 5.0-per-cent net profit interest.
We seek Safe Harbor.