SearchGold Resources Inc.
TSX VENTURE : RSG
FRANKFURT : S10

SearchGold Resources Inc.

November 03, 2009 09:50 ET

Proposed Merger Between Stellar Diamonds and West African Diamonds

MONTREAL, QUEBEC--(Marketwire - Nov. 3, 2009) - SearchGold Resources Inc. ("SearchGold") (TSX VENTURE:RSG)(FRANKFURT:S1O) is pleased to announce that heads of agreement have been reached between Stellar Diamonds Limited ("Stellar") and AIM listed West African Diamonds Limited ("WAD") to undertake a combination of business interests that, if successful will constitute a reverse takeover of WAD by Stellar. It is the intention of the Boards of Stellar and WAD to readmit the shares of the combined entity to be called 'Stellar Diamonds Ltd' on to the AIM market. Further details on the proposed business combination will be released in due course.

SearchGold holds 2.7 million shares of Stellar as a result of the re-organization of its diamond assets in 2007.

About Stellar Diamonds Limited (www.stellar-diamonds.com)

Stellar holds a portfolio of production and development stage projects in the countries of Sierra Leona and Guinea, West Africa. Production commenced from the Mandala alluvial diamond operation in Guinea in late April 2009 and to date some 37,000 carats have been produced, with initial revenues now exceeding $1million. In Sierra Leone, Stellar holds two key properties, the Kono Project (49% ownership in Joint Venture with Petra Diamonds Limited holding 51%) and the Tongo Project (100% ownership). Both these projects are host to high grade kimberlite dyke systems that demonstrate economic potential. The strategy of Stellar is to achieve growth through production and targeted consolidation within the African diamond sector.

About SearchGold Resources Inc. (www.searchgold.ca)

SearchGold Resources is a Canadian-based mining company primarily focussed on gold deposits in Africa with advanced gold projects in Gabon and Burkina Faso. Shares of SearchGold Resources Inc. are listed for trading on the TSX Venture Exchange as "RSG"; and the Frankfurt Stock Exchange as "S1O".

Philippe Giaro, P. Geo., President and CEO of SearchGold Resources Inc. and Qualified Person for SearchGold, has reviewed and approved the content of this release.

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.

Contact Information

  • SearchGold Resources Inc.
    Philippe Giaro, President & CEO
    32-473-52-30-29
    phgiaro@skynet.be
    or
    SearchGold Resources Inc.
    Denis Tremblay, Vice-President
    1-514-866-4224
    info@searchgold.ca