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Press Release
Gold World Resources Signs Binding Agreement for the
Aquisition of Chinese Gold Mine
Toronto,
July 12, 2010,
Gold World Resources Inc. (GDW:TSX-V) (“GWR” or the “Company”) is pleased to
announce that it has signed a Binding Agreement for cooperative exploration,
mining and production of gold of the
operating Jin Yin Dong Gold Mine (“JYD Mine”) from Guizhou Rong Huai Investment
Development Ltd. (“GZRH”) GWR and GZRH agreed to establish a 70/30 percent
equity interest in a Cooperative Joint Venture Company (“CJV”) with 80/20
percent profit or product distribution.
GZRH agreed to have
the mineral rights transferred and registered in the name of the CJV and GWR
has agreed to invest US$2.5 million by installments within 2½ years from date
of government approval of the CJV contract. GWR will also issue shares,
warrants or options to 2 VIP’s of GZRH. Both parties will use their best
efforts to have the CJV Company incorporated within 150 days after the signing
of this agreement and start the operation. All conditions are subject to
regulatory approval.
GZRH is holding one
Exploration Permit for the 41.3km ² JYD Mine, including a 17.8km² Mining
license. The licensed mine production capacity is 30,000 tonnes of ore per
year. Both, the Exploration permit and the Mining license will be transferred
to the CJV Company.
The current size of
the mine, (see press release March 23, 2010) does not reflect the excellent
upside gold potential which previous geological surveys and operating mines in
the vicinity demonstrate.
The JYD Mine, a
consolidation of 3 mines, dates back to the Ming emperors of China, is located
between the western Hunan Province and south-eastern Guizhou Province, where
hundreds gold mineralized sites have been found and some of them have been put
into production. JYD Mine’s ore grades vary from 3.12 g/t to 140.7 g/t as a
result of the coarse gold-nugget effect. Currently, the mine uses a simple
shaker table approach for gold recovery; GWR believes that recovery levels can
be easily upgraded by adding additional extraction processes.
GWR is preparing
currently the work plan and the budget for it to be approved by the Board of
directors. The formal version of the Agreement and Articles of Association are
being prepared by lawyers in Beijing and Toronto.
The acquisition of the
JYD Gold Mine is in line with GWR’s vision and objective to become a gold
producer by putting a gold mine on the Company’s balance sheet, positioning the
Company for growth, and increase shareholder value.
ON
BEHALF OF THE BOARD
"Hermann
Derbuch", For
further information please contact:
Chairman
& CEO Hermann
Derbuch, P.Eng.
Gold
World Resources Inc. Tel.:
416.594.9888 Fax: 416.594.1967
Certain of the
statements made and information contained herein is „forward-looking
information" within the meaning of the Securities Act (Alberta), including
statements concerning Gold World Resources' plans for the Property, which
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Gold World Resources,
to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. Such information
contained herein represents management's best judgment as of the date hereof
based on information currently available.
The TSX-Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this release.
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