15th Nov 2005 07:01
Caledon Resources PLC15 November 2005 Caledon welcomes Avocet's investment in Dynasty Gold Caledon Resources plc ("Caledon" or "the Company") notes the announcement byAvocet Mining plc ("Avocet") on 13th November 2005 that Avocet has agreed topurchase shares and rights to shares (the "Transaction") of Dynasty GoldCorporation ("Dynasty") for an undiluted interest of up to 35.9%. Caledoncurrently holds 12% of the common stock of Dynasty. At the same time that Avocet is acquiring its stake, Caledon will also beincreasing its investment in Dynasty by participating in the recently announcedCDN$1.55 million private placement by Dynasty of units at CDN$0.18. Caledon hasprovisionally agreed to take 20% of the placement (CDN$310,800, equivalent toapproximately £150,000) and, post the placement, will hold approximately 13% ofDynasty. Caledon has been keen to facilitate the Transaction between Avocet and certainshareholders of Dynasty recognising the longer term strategic benefits thatAvocet will bring to Dynasty's projects: Avocet possesses the mine building andoperating skills as well as the financial capacity necessary to conclude thefeasibility and mine development of Dynasty's projects, especially Hatu. The Hatu property includes the Qi-2 deposit which is Dynasty's most advancedproject and has an independently verified inferred resource of 16,855,400 tonnesat 1.68 g/t Au (912,600 ounces gold) using a cut-off grade of 1.0g/t. Thedeposit is currently at the stage where infill drilling will bring the resourceup to a measured and indicated category and we believe Dynasty could put theproject into production within a relatively short period of time. George Salamis, CEO of Caledon, comments: "we are hugely encouraged by Avocet'sdecision to take this stake in Dynasty. We welcome them for their developmentexperience and mining skills. Their participation is a welcome endorsement ofCaledon's investment in Dynasty." Contacts George Salamis [email protected] Donal Douglas [email protected] Caledon Resources Plc 18 Upper Brook Street, London W1K 7PU, England Telephone +44 (0) 20 7318 5780 Facsmile +44 (0) 20 318 5781 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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