Desert Gold to acquire TransAfrika Belgique S.A.
Desert Gold Ventures Inc. (TSX VENTURE:DAU)(OTCQX:DAUGF) has entered into a definitive sale of shares agreement with TransAfrika Resources Cyprus Limited, a Cypriot company, pursuant to which Desert Gold has agreed to acquire all of the issued and outstanding shares of TransAfrika Belgique S.A., a Belgian company, from the vendor, an indirect subsidiary of TransAfrika Resources Limited, a widely held private company existing under the laws of Mauritius.
- Desert Gold intends to acquire TransAfrika which has an extensive portfolio of advanced mineral projects in Central and West Africa, including Mali, Senegal and Rwanda.
- The Byumba Project in Rwanda has an initial inferred resource of 5.5 million tonnes grading 1.48 grams per tonne ("g/t") gold. A National Instrument 43-101 ("NI 43-101") report has confirmed 257,000 ounces of inferred gold for the Byumba Project.
- The Mali concessions cover 112 sq. kilometers with seven discovered gold occurrences highlighted by drill results ranging from 4 meters ("m") at 9.31 g/t gold to 18 m at 1.26 g/t gold.
- The accumulated loss of TransAfrika as reflected in the unaudited financial statements for the period ending March 31, 2011 was US$15 million, which includes exploration expenditures incurred on its subsidiary companies in Rwanda, Mali and Senegal.
- Desert Gold intends to conduct a concurrent financing to be led by MGI Securities Inc., the proceeds of which will be used to conduct further drilling on the most promising of these projects during the next twelve months and for general corporate purposes.