TORONTO, Oct. 26, 2011 -
Takara Resources Inc. ("Takara" or the Company.) (TSX VENTURE: TKK) announces that it holds six million shares of
St. Eugene Mining Corporation Limited ("St. Eugene") (TSX VENTURE: SEM), representing approximately 5% of St. Eugene. On October 25, 2011, St. Eugene announced that
Claude Resources Inc. ("Claude") will acquire all of the issued and outstanding shares of St. Eugene in consideration for approximately $19 million. In addition, shareholders of St. Eugene will receive 0.25 of a share of a newly incorporated company ("Spinco"), that will hold a 100% interest in the Tartan Lake Gold Mine Project in Flin Flon, Manitoba, and cash as described below.
Upon Claude acquiring St. Eugene, Takara expects to receive 0.0789 of a Claude share for each St. Eugene share held, resulting in an aggregate 473,400 shares of Claude. Using the closing price of Claude on October 25, 2011 the value ascribed to the securities held by Takara equates to $946,800. In addition, Takara will receive 1,500,000 shares of Spinco. In addition to transferring its Tartan Lake Gold Mine Project to Spinco., Spinco will receive approximately $800,000 in cash.
The acquisition by Claude, as described above, is expected to close prior to the end of 2011, but notwithstanding that, however, completion is subject to shareholder and regulatory approvals, and accordingly, there is no assurance that the transaction will be completed as contemplated.
For more details, see the news release of St. Eugene dated October 25, 2011.
About Takara
Takara Resources Inc. is a Canadian based gold company focused on exploring and developing its Guyana gold assets in the Guiana Shield that are held within a wholly-owned subsidiary, StrataGold Guyana Inc., namely: (i) the Tassawini Gold Project (100% interest); and (ii) the Arakaka Project (100% interest).
The Tassawini Gold Project hosts a National Instrument ("NI") 43-101 compliant mineral resource estimate (disclosed in a press release dated March 18, 2010) containing 437,000 ounces gold (Indicated resource 10,766,000 tonnes having an average grade of 1.3 g/t) and 62,000 ounces gold (Inferred resource 1,926,000 tonnes having an average grade of 1.0 g/t).
Statement Regarding Forward Looking Information
This news release of Takara contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Takara's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding Takara's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which Takara has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Takara's expectations. Takara undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Neither the 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 news release.
Contact Information
Takara Resources Inc.
Jennifer Boyle, B.A., LL.B.
President & Chief Executive Officer
(647) 430-0966 (office) or (416) 904-2714 (cell)
(647) 430-5676 (FAX)
info@takararesources.com
www.takararesources.com
