Dagilev Capital Corp.
TSX VENTURE : DCC.P

March 18, 2010 11:57 ET

Dagilev Capital to Consolidate 100% Ownership In Salave Gold Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2010) - Dagilev Capital Corp. (TSX VENTURE:DCC.P) ("Dagilev") is pleased to announce that it has entered into an agreement dated March 17th, 2010 (the "Acquisition Agreement") to acquire approximately 5% of the issued and outstanding securities of Exploraciones Minera del Cantabrico S.A. ("EMC") for the sum of EUR 600,000 Euros payable on closing. Closing is subject to acceptance for filing with the TSX Venture Exchange.

This interest, together with the approximate 95% interest in EMC which Dagilev is acquiring from Rio Narcea Gold Mines Ltd. ("Rio Narcea"), a subsidiary of Lundin Mining Corporation (TSX:LUN)(OMX:LUMI), will result in Dagilev owning 100% of the issued and outstanding securities of EMC.

EMC owns a 100% interest, subject to certain royalties due to a third party, in the Salave Gold Deposit located in the Principality of Asturias, Spain. Salave is one of the highest grade and largest undeveloped gold deposits in Western Europe. Further details on the Salave Gold Deposit, the agreement with Rio Narcea and Dagilev's qualifying transaction are set forth in Dagilev's news release dated February 11, 2010.

Dagilev has also entered into loan agreements dated March 17, 2010 with certain lenders (the "Lenders") pursuant to which the Lenders have agreed to lend Dagilev the aggregate principal amount of $850,000. The loan will bear interest at the rate of 5% per annum, payable quarterly, and will be repayable two years from the date of the EMC acquisition or the date that Dagilev completes an equity financing of not less than $2,000,000. As a bonus for the loan, the Lenders will be issued an aggregate of 340,000 common shares of Dagilev.

Sponsorship

Sponsorship of a qualifying transaction of a capital pool company is required by the TSXV unless exempt in accordance with TSXV policies. The Company intends to apply for an exemption from sponsorship requirements, however, there is no assurance that the Company will be able to obtain this exemption.

Completion of the transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

ON BEHALF OF THE BOARD

Cary Pinkowski, Chief Executive Officer and Director

The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Dagilev Capital Corp.
    Cary Pinkowski
    604-694-1600
    604-694-1663 (FAX)
    cp@cpcapital.ca