ATLANTA, Dec. 12, 2006 (PRIME NEWSWIRE) -- OTC Stock Review has published an updated report on Goldrea Resources Corp. (TSX-V:GOR) (Frankfurt:GOJ) (Pink Sheets:GORAF) as a result of Goldrea's announcement last month it has completed an agreement with Rushan City to purchase up to 80% of the operating 1750 TPD Daye Gold Mine located approximately 30 km northwest of Rushan City, Shandong Province, China. China is the world's fourth largest gold producer and the Shandong Province alone accounts for 26% of the overall Chinese total. In 2004, China produced over 212 tons of gold and 64.5 tons came from Shandong Province alone.
Included in the agreement to purchase the Daye Mine is a 10% interest which will be purchased by the management and employees of the Daye operation. This is a tremendous vote of confidence by the Daye management in both Goldrea Resources and the future of the operations. The purchase price will be CDN$16,342,857.14 ($143,000,000 Yuan) for the acquisition of 80% of the mining operation structured over a five year period and the assumption of 80% (GOR 70%/employees 10%) of the $5,000,000 long term debt at 6%/annum. Details of the long term debt are pending.
The Daye Mine is currently operating from remnants of the open pit, underground down dip from the pit and custom milling local deposits in the area. During the open pit operation the Daye Mine was reportedly producing 60,000 ounces of gold per year. Goldrea stated in its recent release it intends to increase production to 2,000 TPD from its adjoining property interests within 16 months.
Goldrea recently hired internationally focused merchant banking firm Tortuga Merchants to help source, negotiate and perform due diligence of prospective acquisitions to further develop and execute Goldrea's business development strategy in China. As a result, we could see additional small to midcap gold producers added to the package.
Additional properties in Goldrea's portfolio include one property in Quebec and five in British Columbia. Four of the British Columbia properties are 50% joint ventured with Molycor Gold Corp and the fifth is 100% owned by Goldrea. Four are advanced stage properties which have already had extensive prospecting, mapping, trenching, geophysics, geochemistry and limited drilling.
The complete report is available at http://www.otcstockreview.com/Files/GORAF/GORAF_Review_2.pdf.
View OTC Stock Review's complete coverage on Goldrea Resources Corp. at http://www.otcstockreview.com/goraf.htm.
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