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Antioquia Gold Inc. (TSX VENTURE:AGD - News;
"Antioquia") is pleased to announce that it has agreed to the terms
of a non-brokered private placement ("Private Placement") for up to
19,455,495 common shares of Antioquia at a price of Cdn$0.40 per common share
for gross proceeds to Antioquia of up to Cdn$7,782,198. The proceeds of the
private placement will be used primarily to accelerate exploration efforts at
Antioquia's principal asset the Cisneros Project located 70 kilometres
northeast of Medellin in the Department of Antioquia, Colombia.
The Private Placement will be subscribed
by Desafio Minero S.A.C. ("Desafio") which previously completed a
non-brokered offering and entered into a Strategic Alliance Agreement with
Antioquia on August 13, 2010. Closing of the Private Placement is expected to
occur on or before January 31, 2011, and is subject to acceptance by
applicable securities regulatory authorities including the TSX Venture
Exchange.
Desafio is the exploration arm of
Consorcio Minero Horizonte S.A. ("Horizonte"), the fifth largest
gold producer and second largest underground gold producer in Peru, producing
approximately 200,000 ounces of gold in 2010. Horizonte and Desafio are both
privately held and controlled by the Navarro-Grau Group ("Group").
In addition to its producing mines, the Group has a strong pipeline of
projects at the exploration and development stage, and is actively involved
in expanding its operational footprint and developing new mining
opportunities in Peru and other parts of Latin America.
The funds from the Private Placement
will be used to aggressively accelerate the current surface exploration
program to expand the drill targets and potential gold bearing structures.
Development of two underground tunnels will also be initiated to facilitate
further drilling on the Guayabito and La Manuela structures and provide data
for grade control and resource estimation and to facilitate bulk samples for
future metallurgical test work.
Richard Thibault, President and CEO of
Antioquia, commented, "The investment by Desafio provides Antioquia with
the funds needed to accelerate the exploration program at the Cisneros
Project. We are also fortunate to be able to draw on Horizonte's 32 years of
experience in the exploration, development and operation of this type of
underground narrow-vein deposit. This experience will become increasingly
important as the Cisneros project passes onto development and
production."
Felix Navarro-Grau Hurtado, a Board
Director of Desafio, commented, "We believe that this participation
demonstrates a further endorsement of Antioquia and the Cisneros Project by
Desafio; and our desire to strengthen our relationship and cooperation to
continue advancing the exploration programs."
Antioquia Gold Inc.
Antioquia is a precious metal
exploration company with projects in Colombia since 2007. Antioquia's
principal asset, which is being actively explored, is its Cisneros Project,
located 70 km northeast of Medellin in the Department of Antioquia, Colombia.
At the Cisneros Project the Company has drilled over 13,300 metres, conducted
extensive geophysical programs and is well versed in the understanding of the
deposit type and the project's path to production. The Cisneros Project
consists of 5,630 hectares and forms the nucleus of the Company's
37,500-hectare land package located throughout Colombia.
For further information on Antioquia
Gold Inc., visit our website at www.antioquiagoldinc.com.
To receive Company news by email,
contact holly@chfir.com and mention
"Antioquia Gold" news in the subject line.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements contained herein
constitute forward-looking statements, including statements concerning the
anticipated closing date and use of proceeds. We believe the expectations
reflected in those forward-looking statements are reasonable but no assurance
can be given that the expectations will prove to be correct and such
forward-looking statements included herein should not be unduly relied upon.
The forward-looking statements included in this press release are made as of
the date of this press release and Antioquia disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as expressly
required by applicable securities legislation.
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 release
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