Chesapeake Gold Corp.

Chesapeake Gold Corp.
American Gold Capital Corporation

January 31, 2007 17:53 ET

Chesapeake Gold and American Gold Announce Extension of Completion of Business Combination

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Further to the press releases of January 17 and January 19, 2007, American Gold Capital Corporation ("American Gold") (TSX VENTURE:AAU) and Chesapeake Gold Corp. ("Chesapeake") (TSX VENTURE:CKG) today announce that they have agreed to extend the deadline date for the completion of the statutory plan of arrangement (the "Arrangement") involving American Gold and Chesapeake from January 31, 2007 to February 14, 2007.

American Gold and Chesapeake are working together to satisfy the remaining completion 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 on or before February 14, 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.

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