First Gold Exploration Inc.

First Gold Exploration Inc.

March 09, 2010 09:50 ET

First Gold Makes $800,000 Loan to Conway Resources

LAVAL, QUEBEC--(Marketwire - March 9, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG) (FRANKFURT:F12) and Conway Resources Inc. (TSX VENTURE:CWY) have signed an $800,000 loan agreement that will enable Conway Resources to finalize the transaction for the acquisition of the Belleterre Mine and meet the TSX Venture Exchange minimum working capital requirements. The loan bears monthly interest at 1% and matures in one year. It is also secured by all the assets of Conway.

First Gold has transferred an amount of $800,000 to its In Trust account for the purpose of this transaction.

First Gold and Conway have also initiated discussions for First Gold to sell its 50% interest in the Croinor property for $5 million, which would be paid in units (shares and warrants) of Conway, cash or a combination of both.

The goal of these transactions is to create a gold producing company in the prolific Abitibi-Temiscamingue area.

The two companies have until March 31, 2010, to conclude a firm letter of intent for the above-mentioned acquisition.

Blue Note Mining holds the remaining 50% interest in Croinor and has a 60-day right of first refusal that allows it to approve the transaction between First Gold and Conway or submit an equal offer to First Gold.

The agreement will also include the following conditions: approval by both Boards of Directors; satisfactory due diligence by both parties; receipt of shareholders' approval, if required; compliance with all regulatory requirements; approval by the TSX Venture Exchange; and execution of a firm Letter of Intent.

First Gold will also have three seats on Conway's Board of Directors and will become a major shareholder of Conway.

Notre-Dame Capital Inc. has been retained to raise $2 million by way of convertible debentures for Conway and act as its financial advisor. Richard T. Groome of Notre-Dame Capital is also a director of First Gold Exploration.

The loan is subject to the approval of the TSX Venture Exchange.

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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