Vangold Executes Option Agreement Allowing Rossland Resources to Acquire the Remaining 50% of Vangold’s Rossland Project
VANGOLD RESOURCES LTD. TSX-V: VAN
NEWS RELEASE
VANGOLD EXECUTES OPTION AGREEMENT ALLOWING ROSSLAND RESOURCES TO ACQUIRE THE REMAINING 50% OF VANGOLD’S ROSSLAND PROJECT
October 31, 2011 – Vancouver, BC - Vangold Resources Ltd. ("Vangold" or the "Company") (TSX-V: VAN) is pleased to announce it has entered into an agreement with Rossland Resources Inc. (“Rossland”), a private Canadian company, allowing Rossland to acquire a 100% interest in Vangold’s Rossland claims, located in southeastern British Columbia, Canada. (Rossland currently owns the other 50% interest in the Rossland claims.) The claims surround the town of Rossland which is about 400 km east of Vancouver and 8 km north of the Canada-US border. The claims consist of two principal groups: The North Belt, which includes the former producing gold mines, Iron Colt, Evening Star and Georgia; and the South Belt, which includes the former producing lead/zinc Blue Bird-Mayflower mine and Homestake-Gopher gold mines.
Vangold and Rossland currently control approximately 1,330 hectares in the district and most of the South belt property in a single, contiguous block.
Under the terms of the agreement, Rossland has issued 400,000 of its common shares to Vangold and it shall fund $400,000 in qualified exploration and development work on the property by June 1, 2012 to earn an additional 25% interest. To earn the remaining 25% interest bringing its ownership to 100%, Rossland shall issue Vangold 500,000 common shares on or before June 1, 2012, as well as, fund an additional $900,000 in qualified exploration and development work on the property on or before June 1, 2013. With the completion of the proposed transaction Rossland will own 100% interest.
In addition, Rossland has granted Vangold a 1.5% Net Smelter Royalty (“NSR”) on the claims and will grant an additional 1.5% NSR upon the acquisition of 100% of the properties. It is understood that Rossland can purchase the NSR granted to Vangold for a total of $1,000,000 for every 1% NSR at any time. Rossland shall act as operator of the project.
Vangold will be focusing on its controlling interests on its advanced Gold and base metal projects in Papua New Guinea and Uganda.
About Vangold Resources Ltd. In Papua New Guinea, Vangold has three advanced gold properties, the Mt. Penck, Fergusson and Allemata properties. The properties are located along the “Pacific Rim of Fire”, the active circum-Pacific volcanic belt that is host to large copper-gold porphyry systems (Grasberg, Ok Tedi, Panguna and Frieda River) and to a number of world class epithermal gold deposits, including the multi-million ounce deposits at Barrick’s Porgera and Newcrest Mining’s Lihir gold mines. Headquartered in Vancouver, Canada, Vangold holds a diversified portfolio of mineral projects in North America, Papua New Guinea and Uganda, as well as oil and gas concessions in Armenia. In addition, Vangold holds a significant stake in Coppermoly Limited, an Australian listed security (ASX: COY). Vangold’s shares are listed on the Toronto Venture Stock Exchange under the symbol VAN and on the Frankfurt Stock Exchange under the symbol VAQ.
To find out more about Vangold please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email [email protected].
On Behalf of the Board of
VANGOLD RESOURCES LTD.
"Dal Brynelsen"
Dal Brynelsen, President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.