TORONTO, ONTARIO--(Marketwire - May 27, 2009) - Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or "the Company") is pleased to announce that 95.97% of the shares of StrataGold Corporation ("StrataGold"), voted at the special meeting of the shareholders of StrataGold held in Vancouver on May 26, 2009, representing well over the required two-thirds, voted in favor of the acquisition of StrataGold by Victoria (the "Acquisition").
Mr. Chad Williams, President, CEO, and a Director of Victoria said "The acquisition of StrataGold is an important and positive milestone for Victoria for the following reasons:
- Increases Victoria's total National Instrument 43-101 ("NI 43-101") gold resources from 1.2 million ounces to 4.4 million ounces with just 17% equity dilution reflecting an acquisition cost of under $3 per gold ounce per share at a time when the gold price is nearing all-time highs,
- Provides Victoria with control of StrataGold's gold project portfolio that has substantial exploration and possible mine development growth potential, much of which is located in lower-risk jurisdictions,
- Adds gold assets to which Victoria will use its proven exploration and mine development expertise to add value per share."
Victoria prudently selected StrataGold as an acquisition candidate amongst a large group of available growth opportunities principally because of StrataGold's advanced-stage Eagle Zone Deposit comprising a part of the Dublin Gulch land package in the Yukon, which hosts an NI 43-101 Indicated Resource of 2.7 million ounces of gold (98,584,000 tonnes) grading 0.849 grams per tonne (g/t). The Eagle Zone Deposit has numerous favorable features such as a high-category gold resource, road accessibility, low strip ratio, attractive metallurgical characteristics and nearby hydro-electric power. The deposit shares many geological similarities to Kinross Gold Corporation's ("Kinross") Ft. Knox Gold Mine in Alaska. Kinross is Victoria's largest shareholder and will hold approximately 21% of the Company's outstanding common shares, pro-forma the StrataGold transaction.
StrataGold also has interests in many promising properties in Guyana. The wholly-owned Tassawini Deposit hosts a near-surface NI 43-101 resource of 436,600 ounces of gold (10,766,000 tonnes) grading 1.3 g/t gold. In addition, StrataGold and Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation (NYSE:NEM), continue to jointly explore what is the dominant land position in Northwestern Guyana as part of the BRL Venture. Newmont Mining Corporation ("Newmont") was StrataGold's largest shareholder with a approximately 15% ownership position. Newmont voted in favor of the Victoria acquisition of StrataGold. Victoria welcomes Newmont as a significant shareholder.
Victoria also welcomes Leendert G. Krol as a new Director of Victoria, subject to approval at the Company's next shareholder meeting. Mr. Krol is an independent consultant with 40 years of diversified experience in the mining industry, including 15 years in the gold mining industry with Newmont. Mr. Krol has been responsible for exploration projects in Tanzania, Uganda, South Africa, Botswana, Angola, Guinea, Peru, Chile, Ecuador, Brazil, Guyana, Paraguay, Mexico, Canada, USA, Indonesia, Kazakhstan, Kyrgyzstan, and Uzbekistan. In addition to exploration, 4 years were spent with Newmont operations in Nevada with positions in investor and public relations and metallurgical services. In his last 9 years with Newmont, Mr. Krol was responsible for all international exploration, initially as director and between 1994 and 2001 as Vice President. Since his retirement from Newmont, Mr. Krol joined the Board of Directors of Romarco Minerals Inc. and Brazauro Resources Corp.
The Company's top priority is to expeditiously advance the Eagle Zone Deposit and Cove Project located in Nevada towards gold production in a cost-effective manner.
In addition, Victoria aims to continue exploring its portfolio of promising Nevada gold projects such as Mill Canyon, Santa Fe, and Big Springs.
The Company will also seek to advance the balance of its property holdings through funding agreements with top caliber arms-length groups such that Victoria maintains considerable upside in the growth of those assets.
Drill hole NW-15 was recently completed successfully, ahead of schedule and below budget. Assays are expected over the next several weeks. The Company will continue to evaluate the merit of driving an adit (tunnel) into the Helen Zone to facilitate underground exploration drilling to further expand the zone. Drilling from underground is expected to be faster, less expensive and more precise than drilling from surface.
As previously reported on May 5, 2009, the Company has issued 200,000 common shares to a consultant as payment for services rendered. The common shares of Victoria issued pursuant to such arrangement will be subject to a hold period until September 14, 2009.
Victoria is a high growth gold company with a focus on adding value per share through efficient exploration, project development, accretive acquisitions and effective marketing. Maintaining a low risk profile through project diversification, sound financial management, and operating in secure jurisdictions are key priorities for Victoria's management team.
On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO, President & Director
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.
FOR FURTHER INFORMATION PLEASE CONTACT:
Victoria Gold Corp.
President & CEO
416-866-8800 ext 230