TORONTO, ONTARIO--(Marketwired - May 15, 2013) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Legend Gold Corp. (The "Company" or "Legend Gold") (TSX VENTURE:LGN) is pleased to announce that the Company is nearing completion of definitive agreements to acquire several exploration-stage properties located in Mali from Endeavour Mining Corporation ("Endeavour") (TSX:EDV)(ASX:EVR) and to acquire Corado Resources Corp. ("Corado"), a private Canadian company exploring in the Republic of Congo. In conjunction with this acquisition the Company will raise up to $6 million through a non-brokered private placement with affiliates of Sprott Inc. ("Sprott"). The Company will also strengthen its management team through the addition of key personnel from Corado. Legend has been exploring for gold in Mali since 2002 and has three projects with active exploration programs.
Douglas Perkins, CEO of Legend stated that "this is a tremendous deal for Legend shareholders as it strengthens the balance sheet through the financing, provides exposure to a suite of dynamic exploration properties with country and metal diversification, and strengthens our management team with the addition of Demetrius Pohl and Steve Olson both of whom have worked in Africa for the past 25 + years. It also adds Endeavour as a significant shareholder. Endeavour has three operating mines in Ghana, Mali, and Burkina Faso and one mine under construction in Côte d'Ivoire."
Neil Woodyer, CEO of Endeavour stated that "we are pleased to participate in this transaction that attracts both dedicated funding and an experienced exploration team to advance properties we have not been actively exploring as we are focused on building our fourth mine."
The details of the Endeavour and Corado acquisitions are outlined below and are expected to close in late June. Both acquisitions are subject to signing of definitive agreements, TSX-V approval, and completion of the financing. There is no certainty that either of the acquisitions or financing will be completed as planned. As part of Legend's upcoming annual shareholder's meeting, the Company will seek shareholder approval to consolidate the common shares outstanding on a 6 for 1 basis which, if approved, would reduce the shares outstanding from 80,431,324 to 13,405,221.
Endeavour Property Acquisition
Corado Resources Corp Acquisition
Private Placement
Legend will engage affiliates of Sprott to raise, on a best efforts basis, $6 million through the sale of 20,000,000 subscription receipts (the "Subscription Receipts") at a price of $0.30 per Subscription Receipt. Each Subscription Receipt shall be convertible, for no additional consideration, into a unit (each a "Unit", and collectively the "Units") upon satisfaction of the conditions specified below under "Conversion Conditions". In the event that certain closing conditions are not satisfied on or before 5:00 pm (Toronto time) on July 12, 2013 (the "Termination Time"), the Subscription Receipts shall be automatically redeemed for a redemption price equal to the subscription price plus a proportionate share of any interest earned on the Proceeds.
About The Company
Legend Gold is a mineral exploration and development company focused on exploring for gold in the Republic Of Mali, West Africa. Our five main projects are the Lakanfla, Mougnina, Tiekoumala, Kata, and Mogoyafara projects. In recent years, we have made significant gold discoveries on the Tiekoumala project located in Southern Mali, and the Lakanfla project located in Western Mali. Please visit our website www.legendgold.com to view project details.
This press release has been prepared by Legend Gold Corp. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements that are based Legend Gold Corp.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
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