American Gold Capital Corporation

Chesapeake Gold Corp.

Chesapeake Gold Corp.

January 19, 2007 12:47 ET

American Gold and Chesapeake Gold Announce Business Combination Receives Court Approval

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Further to the press release of January 17, 2007 American Gold Capital Corporation ("American Gold") (TSX VENTURE:AAU) and Chesapeake Gold Corp. ("Chesapeake") (TSX VENTURE:CKG) today announce that yesterday, January 18, 2007 the Supreme Court of British Columbia approved the statutory plan of arrangement (the "Arrangement") involving American Gold and Chesapeake.

The closing of the transaction remains subject to satisfaction or waiver of certain other conditions specified in the Arrangement Agreement entered into between Chesapeake, 0769783 B.C. Ltd. (a wholly-owned subsidiary of Chesapeake) and American Gold, including approval by the TSX Venture Exchange. If these conditions are satisfied or waived, the transaction is expected to close prior to the end of January 2007, after which American Gold shareholders will be entitled to receive the consideration payable under the Arrangement.

Forward looking statements

This press release contains certain forward looking statements that may involve a number of risks and uncertainties. Actual results could differ materially from the Company's expectations and projections. In addition, the completion of the transactions contemplated by this release is conditional upon a number of factors, many of which are outside of American Gold's control. There is no assurance that the transactions will be completed at all or upon the same terms and conditions previously announced.

The TSX Venture Exchange has neither approved nor disapproved and does not accept responsibility for the adequacy or accuracy of the information contained in this press release.

Contact Information

  • Chesapeake Gold Corp.
    P. Randy Reifel
    (604) 731-1094
    American Gold Capital Corporation
    Chris K. Falck
    (604) 689-1765, ext. 1