January 16, 2012
Concordia Resource Corp. (TSX-V: CCN) ("Concordia" or the
"Company") is pleased to announce that effective January 13,
2012, following the approval of the shareholders (the "Swala
Shareholders") of Swala Resources Inc. ("Swala") at a
shareholders' meeting held on December 23, 2011, it has
completed its acquisition of all of the issued and
outstanding securities of Swala pursuant to a court approved
plan of arrangement involving Concordia, Swala and the Swala
Shareholders, optionholders and warrantholders of Swala (the
"Arrangement"). Swala brings to Concordia an extensive
exploration portfolio in the highly prospective regions of
Burkina Faso, Gabon, the Democratic Republic of Congo,
Zimbabwe and Mozambique with a land package totaling over
12,400 km2, as well as an experienced management team and
directors with extensive expertise in Africa.
The Acquisition
Pursuant to the terms of the Arrangement, each Swala
Shareholder will receive 1.9 common shares of Concordia for
each share of Swala held. Prior to closing, Swala had
13,555,641 shares issued and outstanding, which will result
in approximately 25,755,718 shares of Concordia being issued
to Swala Shareholders (subject to adjustment for fractional
shares).
Holders of warrants of Swala ("Warrantholders") who have not
exercised warrants of Swala ("Warrants") prior to the closing
of the Arrangement (the "Closing") will have their Warrants
converted into common share purchase warrants of Concordia
("Concordia Exchange Warrants") in accordance with a warrant
exchange ratio of 0.5 Concordia Exchange Warrants for each
Warrant held. Warrantholders who currently hold
Warrants having an exercise price of $2.50 will receive
Concordia Exchange Warrants with an exercise price of
$0.88. Warrantholders who currently hold Warrants
having an exercise price of $1.75 will receive Concordia
Exchange Warrants with an exercise price of $0.61.
Concordia will issue: (i) 502,222 Concordia Exchange Warrants
with an exercise price of $0.88, expiring on December 9,
2012; (ii) 1,200 Concordia Exchange Warrants with an exercise
price of $0.61, expiring on December 9, 2012; (iii)45,936
Concordia Exchange Warrants with an exercise price of $0.88,
expiring on December 20, 2012; (iv) 285,714 Concordia
Exchange Warrants with an exercise price of $0.88, expiring
on December 22, 2012; (v) 605,830 Concordia Exchange Warrants
with an exercise price of $0.88, expiring on December 31,
2012; (vi) 51,500 Concordia Exchange Warrants with an
exercise price of $0.61, expiring on December 31, 2012; and
(vii) 11,429 Concordia Exchange Warrants with an exercise
price of $0.88, expiring on August 31, 2013.
Any outstanding Swala options were exercised for Swala shares
immediately before the Closing on a cashless, in-the-money
value basis, using the 1:1.9 share exchange ratio and
unexercised options will be cancelled. Following
Closing, Concordia will issue options to acquire an aggregate
of 2,221,754 shares of Concordia, with an exercise price of
$0.70 per share, to members of the Swala team.
The combined company will retain the Concordia name and
remain headquartered in Vancouver, Canada. Swala will
become a wholly owned subsidiary of Concordia and the Swala
Shareholders will be shareholders of Concordia, holding
approximately 30% of the issued and outstanding shares of
Concordia post-Closing.
"The acquisition of Swala provides Concordia with the ability
to commence an aggressive drill programme in Burkina Faso,
where Swala owns 100% of the Kerboulé property
(containing the Araé and Gassel Manéré licenses) and is
earning up to an 80% joint venture interest on
SearchGold Resources Inc's (TSX-V: RSG)
Guéguéré property," stated Edward Flood, CEO of
Concordia. "The focus of the proposed drilling programme for
2012 is to generate a NI 43-101 qualified resource in the
Kerboulé area of the Arae Gassel licenses while continuing to
explore for new targets on the Arae-Gassel and Guéguéré
licenses.
We believe that Swala's African properties, and its Burkina
Faso properties in particular, have all the components
necessary to establish a very promising future in one of the
great gold plays of West Africa. Members of
Swala's technical team are former Anglo American plc.
and De Beers executives with extensive operational experience
throughout the African continent. This made Swala an
attractive acquisition opportunity and we are pleased to have
closed this transaction."
Commenting on behalf of Swala, Gerard de la Vallée Poussin,
Executive Chairman of Swala stated, "In challenging
markets we are fortunate to have found a suitor in Concordia
who shares our enthusiasm for Africa and a belief in our
projects and team. Together we have all of the elements of a
successful exploration company and this transaction allows
the potential of our various projects in Africa to be
realized and in particular the Kerboulé gold project in
Burkina Faso."
Exploration Update
Concordia is pleased to provide the following exploration
update in respect of Swala's activities in Burkina Faso:
A 2011 work program for the Kerboulé property was recommended
by SRK Consulting (Canada) Inc. in its Independent Technical
Report dated 28 July 2011. The objective of the program was
to complete the acquisition of reconnaissance exploration
work over the entire property to identify new gold
mineralization targets in largely unexplored parts of the
licences, to undertake 'step-out' RAB drilling to investigate
possible extensions to some of the known mineralized areas
and prepare exploration targets for RC and core drilling
planned for 2012.
- Airborne geophysical survey and interpretation
- Trenching and structural interpretation
- Regional 'pit' geochemical sampling
- RAB scout drilling on four anomalous targets
A map detailing the trenching, sampling and RAB scout drilling at the project in Burkina Faso is available on Concordia's website.
Geophysical Survey
A high resolution airborne magnetic survey was completed by Xcalibur Airborne Geophysics of South Africa in February 2011. The geophysical data was interpreted by Dr. IJ Basson of Tect Geological Consulting ("Tect"), South Africa and, having confirmed targets generated in previous exploration, is being used to assist exploration and drilling targeting planned for 2012. Tect's conclusions on the geophysical data were as follows:
- It is likely that the shear zone encountered at Inata, approximately 20 km to the south of the survey area continues into the Arae-Gassel block.
- The geophysical interpretation suggests that there are at least two late-kinematic to post-kinematic intrusions in the southern portion of the survey area. These intrusions preserve the prevailing NE-SW and NW-SE trending.
- Late- to post-kinematic intrusion may have remobilized and disseminated pre-existing mineralization or it may have remobilized and focused mineralization into the major structures.
- Comments by Dr. S. Buttner ("Buttner"), a specialist structural geologist from Rhodes University, South Africa who was engaged by Swala, on vein stockworks, alteration and narrow intrusions in the area, suggest that the southern part of the survey area occurs within and is affected by Pluton 2, which is probably close to the surface.
-
A possible mineralization model is an intrusive
overprint - along with redistribution/dissemination of
mineralization from an N- to NNE-trending shear zone or
- alternatively - remobilization and focusing of
mineralization into pre-existing structures.
-
Trenching and Structural Study at Kerboulé, Gold
Occurrence.
A total of 14 trenches (3.8 linear km) were excavated across the gold mineralization area for structural interpretation and detailed sampling. A total of 3,743 trench samples have been collected, of which, to date, assay results have only been received for 1491. The samples are being treated and analyzed by Biggs Global laboratory in Ouagadougou, Burkina Faso, using the bottle roll, DIBK extract, flame-AAS technique. Complete results from that work will be disclosed once all assay results have been received, validated and interpreted.
The following table provides a summary of the significant results received to date. The Company has not completed a QA/QC analysis on these results and the reader should be cautioned that these results are very preliminary and are not necessarily conclusive.
ANOMALYTRENCH NOFROMTOMETRESAV G/TKerboule-AT11-001114148341.920YalemaAT11-00285107221.568Buttner was contracted by Swala to carry out a structural analysis of the Kerboule area and his findings were also integrated into the geophysical interpretation undertaken by Tect (discussed above). The figure below shows the two main structural trends in the Kerboule area.
Regional geochemical 'pit' sampling
A geochemical 'pit' sampling programme was undertaken to complete the coverage of soil samples initially collected by Orezone Gold Corporation ("Orezone") (TSX: ORE), the previous project operator. The sampling programme was undertaken during the dry season, ending in September 2011. A total of 4,054 samples were collected during this programme. Sample results are now available, and a number of new anomalies have been identified. Sixteen samples returned values greater than 100 parts per billion ("ppb") Au with the highest value at 679 ppb. The most interesting "continuous" gold anomaly is in eastern Gassel Manéré, where five samples had values greater than 100 ppb Au with a maximum of 580 ppb Au. The soil geochemical surveys and the anomalies identified are shown on the map, below.
Below is a compilation map showing the distribution of Orezone's historical geochemical samples (squares) and recent pit geochemical samples collected by Swala (coloured dots).
RAB scout drilling program
"Step out" RAB scout drilling was completed to re-evaluate four anomalous areas identified from previous soil sampling. The program consisted of the following:
- Angled RAB 30m holes, 20m part along lines 150m apart, extending 200m. These were designed to intersect the mineralization trends.
- An extended grid of vertical RAB holes to intersect the saprolite layer, extending the above lines by a further 200m on either side.
A total of 21,700 meters were drilled in this program and 19,198 samples were collected for assaying. Partial assay results for 13,884 samples have been received and are being validated. Complete results for the RAB drilling program will be released once all assay results have been received, validated and interpreted. Complete results for the RAB drilling program are anticipated to be received, validated and interpreted by mid-2012.
The following table provides a summary of the significant results received to date. The Company has not completed a QA/QC analysis on these results and the reader should be cautioned that these results are very preliminary and are not necessarily conclusive. The widths quoted in the table below are not true widths.
ANOMALYHOLE NOFROMTOMETRESAV G/TCOMMENTSArielAX1101797812.435AX11024281670.714AX11018561370.405Gassel-HaissaAX110389253054.656Incomplete resultsAX110423010100.483AX110535151830.740Kerboule-YalemaAX1108211427130.697AX110871212770.450AX110838222531.050AX110828253050.926YalemaAX110723171931.683AX1108391221.215
In addition to the work program outlined above, Swala has initiated an aggressive follow-up exploration program for 2012 on new targets identified by the regional geochemical pit sampling program and the Kerboulé mineralized zone identified by previous Orezone and Swala work and documented in the NI 43-101 report. This includes the following:
- ground geophysical surveys
- over 6,000m of detailed auger sampling
- 20,000m of R/C drilling
- 6,000m of core drilling.
The primary objective of this program is to define the extent of the gold mineralization identified from previous work, and document its geological controls to support the preparation of an initial mineral resource statement for the Kerboulé area.
Mr. Barry Bayly, is a member of the South African Council for National Scientific Professionals (SACNSP), South Africa and is a qualified person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). He is responsible for the exploration program in the Area and Gassel-Manere licences. He has verified the regional geochemical 'pit' sampling results and other data disclosed in this news release. The airborne geophysical survey and structural analysis were contracted to registered professional scientists and the geochemical sampling and trenching program were supervised on site by experienced Swala geologists. In-house quality controls included written procedures and routine checking and verification by senior Swala technical staff. The geochemical "pit" samples were submitted to the Abilab Afrique del'Ouest SARL ("Abilab") in Ouagadougou, Burkina Faso for preparation and assaying using the bottle-roll 'leachwell' flame-AAS technique. Abilab is part of the ALS Laboratory Group and operates under a global quality management system that is accredited ISO9001:2000. Mr. Bayly is the chief operating officer of Swala and is therefore not independent within the meaning of NI 43 101.
is a well-financed junior exploration company. The successful
acquisition of Swala will add to Concordia's precious
metals portfolio, which includes the past-producing La
Providencia silver mine in Argentina, and will position the
company as an African explorer with an emphasis on developing
gold deposits holding the potential of one million ounces
upwards. Concordia has its head office and executive
management team in Vancouver, Canada; its technical team is
based in Reno, Nevada.
Forward Looking Statements
Certain of the statements made and information contained
herein is "forward-looking information" within the meaning of
the Securities Act (Ontario), including the receipt of
necessary permits to conduct exploration and construction,
timing of anticipated exploration programmes, the number of
holes and meters to be drilled and future plans of the
Company. Forward-looking information is subject to a
variety of risks and uncertainties which could cause actual
events or results to differ from those reflected in the
forward-looking information, including, without limitation,
risks and uncertainties relating to risks inherent in mining,
including, without limitation, environmental hazards,
industrial accidents, unusual or unexpected geological
formations, ground control problems and flooding; risks
associated with the estimation of mineral resources and
reserves and the geology, grade and continuity of mineral
deposits; the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; the potential for and effects of
labour disputes or other unanticipated difficulties with or
shortages of labour or interruptions in production; actual
ore mined varying from estimates of grade, tonnage, dilution
and metallurgical and other characteristics; the inherent
uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; uncertain political and economic environments;
changes in laws or policies, delays or the inability to
obtain necessary governmental permits; and other risks and
uncertainties, including those described in the Company's
management discussion and analysis. In addition,
forward-looking information is based on various assumptions
including, without limitation, the expectations and beliefs
of management, the assumed long term price of metals;
appropriate equipment and sufficient labour and that the
political environment where the Company operates will
continue to support the development and operation of mining
projects. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
described in the forward-looking information.
Accordingly, readers are advised not to place undue reliance
on forward-looking information. The forward-looking
statements contained in this press release are made as of the
date of this press release and the Company undertakes no
obligation to update publicly or revise any forward-looking
information whether as a result of new information, future
events or otherwise, except as required by applicable law.
The TSX-V has neither approved nor disapproved the contents of this press release. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this press release.
distribué par | Ce noodl a été diffusé par Concordia Resource Corp. et initialement mise en ligne sur le site http://www.concordiaresourcecorp.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-16 15:29:11 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |