Vangold Signs Acquisition Agreement with Petro Novus for Interest in Armenia Concessions Blocks 4, 5, and 6
VANGOLD RESOURCES LTD. TSX-V:VAN
NEWS RELEASE
VANGOLD SIGNS ACQUISITION AGREEMENT WITH PETRO NOVUS FOR INTEREST IN ARMENIA CONCESSIONS BLOCKS 4, 5, AND 6
February 3, 2011 – Vancouver, BC - Vangold Resources Ltd. ("Vangold" or the "Company") (TSX-V: VAN) is pleased to announce that the Company, together with Blackstairs Energy PLC (“Blackstairs”) of Ireland, a private oil and gas exploration and development company, have signed an “Acquisition Agreement” with Petro Novus AG (“Petro Novus”) that gives Petro Novus a 50% interest in a Petroleum Exploration and Production Sharing Agreement (“PEPSA”) for “hydrocarbon exploration and production rights” in the Republic of Armenia. Upon completion of the acquisition agreement, Vangold and Blackstairs will each, respectively, retain a 25% share in the PEPSA.
The PEPSA was originally executed by Vangold and Blackstairs with the Government of Armenia on April 27th, 2007. The contract covers the areas designated as "Blocks 4, 5 and 6" and extends 13,775 square kilometres in central and southern Armenia. The associated "Exploration Licence Permits" and the "Licence Agreement" were approved by the Armenian authorities in May 2007 and December 2007 respectively. These permits and agreements allow full access to the existing technical archive data and clearance to commence technical operations throughout the entire permit area.
Under the acquisition agreement, Petro Novus is obligated to make total payments of US $2.5 million. Petro Novus will make cash payments of US $1 million in total to partners Vangold (50%) and Blackstairs Energy (50%) over a period of eighteen months. Petro Novus will also spend $1.5 million on a work program that will consist of the review, analyses, reprocessing and re-interpretation of the existing Technical Data, conducting geological mapping of structures, and acquiring not less than 170 line kilometres of 2D seismic.
Dal Brynelsen, President and CEO of Vangold states, “We are pleased that PetroNovus has joined the Armenian Joint-Venture and we look forward to their management team bringing their extensive energy sector experience to bear in the evaluation of blocks 4, 5 and 6. These oil and gas concessions in Armenia encompass 13,755 square kilometres - approximately half the country - and are adjacent to Iran, Azerbaijan and Georgia, all countries with significant oil and gas resources. Management believes a similar potential exists for the discovery and development of oil and gas in southern Armenia. I look forward to working with the management team at Petro Novus and to rapidly advancing our project in Armenia.”
About Vangold Resources Ltd.
In Papua New Guinea, Vangold has three advanced gold properties, Mt. Penck, Fergusson and Allemata. 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 VANGOLD RESOURCES LTD. Page 2 of 2
and Frieda River) and to a number of world class epithermal gold deposits, including the multimillion ounce deposits at Barrick’s Porgera and Newcrest Mining’s Lihir gold mines.
Headquartered in Vancouver, Canada, Vangold Resources Ltd. 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 Resources Ltd. 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
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