Asia Gold Corp.

Asia Gold Corp.

March 30, 2007 16:15 ET

Asia Gold Provides Update on Progress of Mongolian Coal Acquisition Agreement With Ivanhoe Mines

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2007) - Asia Gold Corp. (TSX VENTURE:ASG) announced today that it had been advised by Ivanhoe Mines that 25 of the 35 coal exploration licences held by Ivanhoe Mines in the South Gobi area of Mongolia have been transferred by the Mongolian Government's Cadastral Office. Two key licences at the Nariin Sukhait coal discovery that contain the Ivanhoe Coal Division's main coal resources are among the transferred licences.

Ivanhoe Mines and Asia Gold expect to close the transaction previously approved by shareholders, which will see the merger of Ivanhoe's Mongolian Coal Division into Asia Gold in exchange for approximately 82.6 million shares of Asia Gold, once the remaining 10 coal exploration licences have been approved for transfer - which is expected to occur shortly. The companies have agreed not to set a time limit on the completion of the formal licence transfer process that has been initiated.

Ivanhoe Mines and BHP Billiton currently own approximately 45% and 10% respectively of the issued and outstanding shares of Asia Gold. The coal transaction would result in Ivanhoe Mines owning approximately 90% of the issued and outstanding shares of Asia Gold.

Forward-Looking Statements: This document includes forward-looking statements, which include, but are not limited to, statements concerning the proposed transaction between Ivanhoe Mines and Asia Gold, statements concerning the transfer of certain mineral licences in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although Asia Gold believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in their respective filings with Canadian securities regulators.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.

Contact Information

  • Asia Gold Corp.
    Steven Feldman
    (604) 681-6799
    Asia Gold Corp.
    Bob Williamson
    (604) 681-6799