|
Luna Gold Enters Into Debt Amendment Agreement With Eldorado and
Brascan
View this News Release in PDF
Format
Vancouver, July 20, 2011 - Luna Gold Corp. (TSXV-LGC) ("Luna
Gold" or the "Company") announces that it has entered into
an agreement with Brascan Natural Resources S.A. ("Brascan")
and Eldorado Gold Corporation ("Eldorado") to amend the
outstanding debt of the Company to Brascan and Eldorado. Luna Gold had
issued promissory notes in the aggregate amount of US$3,000,000,
respectively, to each of Eldorado and Brascan in connection with the 2006
Purchase Agreement pursuant to which Luna Gold acquired the Aurizona project from Brascan and Eldorado. In
satisfaction of the aforementioned promissory notes, Brascan and Eldorado
will each receive:
- US$1,500,000 in cash on or before December
2, 2011; and
- such
number of common shares of Luna Gold, on or about July 25, 2011, as
is equal to the Canadian dollar equivalent of US$1,500,000 divided
by C$0.59 per share.
The proposed share issuance remains subject to approval by the TSX
Venture Exchange.
About Luna Gold Corp.
Luna Gold is a producing gold company with development and exploration
projects. Gold production is from the Aurizona
Mine in Maranh�o, Brazil, development is the Cachoeira deposit in Para, Brazil and the Company is
exploring in a large strategically placed land position in Maranh�o, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
John Blake -- President and CEO
Website: www.lunagold.com
For further information, contact Investor Relations at (604) 689-7317 or
toll free at 1-866-689-7317.
NEITHER 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.
Forward-Looking Statements
This news release may contain certain "forward looking
statements" and certain "forward-looking information" as
defined under applicable Canadian and U.S. securities laws.
Forward-looking statements can generally be identified by the use of
forward-looking terminology such as "may", "will",
"expect", "intend", "estimate",
"anticipate", "believe", "continue",
"plans" or similar terminology. Forward-looking statements
include, but are not limited to, the completion of the proposed
transactions outlined herein. Forward-looking statements are based on
forecasts of future results, estimates of amounts not yet determinable
and assumptions that, while believed by management to be reasonable, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. Certain of the statements made herein by
Luna Gold Corp. are forward-looking and subject to various risks and
uncertainties, both known and unknown, many of which are beyond the ability
of Luna Gold Corp. to control or predict. Known and unknown factors could
cause actual results to differ materially from those projected in the
forward-looking statements. Forward-looking information is subject to
known and unknown risks and uncertainties that may cause Luna Gold
Corp.'s actual results, performance or achievements may be materially
different from those expressed or implied by such forward-looking
information, and are developed based on assumptions about such risks,
uncertainties and other factors set out here in, including but not
limited to the inherent risks involved in the exploration and development
of mineral properties, the uncertainties involved in interpreting drill
results and other exploration data, the potential for delays in
exploration or development activities, mine development and production
costs, the projected life of the Company's mines, future production
levels, 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, accidents, equipment
breakdowns, title matters, labor disputes or other unanticipated
difficulties with or interruptions in production and operations,
fluctuating metal prices, unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future,
the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price fluctuations,
currency fluctuations, regulatory restrictions, including environmental
regulatory restrictions and liability, competition, loss of key
employees, and other related risks and uncertainties. The Company
undertakes no obligation to update forward-looking information except as
required by applicable law. Such forward-looking information represents
management's best judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future results may
vary materially. Accordingly, readers are advised not to place undue
reliance on forward-looking statements or information.
|