Azteca Gold Corp.

Azteca Gold Corp.

October 19, 2009 18:24 ET

Azteca Gold Announces Two Mile Geophysics Update and Financings

SPOKANE, WASHINGTON--(Marketwire - Oct. 19, 2009) - Matthew Russell, President of Azteca Gold Corp. ("Azteca" or the "Company") (TSX VENTURE:AZG) announces site completion of the first phase of down-hole gravity geophysics at its 50% owned Two Mile Project. Scintrex personnel collected down-hole data in DDH-005B and DDH-006B from September 29, 2009 through October 7, 2009. Scintrex has processed the data for DDH-005B and has confirmed to the Company that they are confident in the data from a depth of 1800 FT to 9700 FT for inclusion in their final report which is expected within two weeks.

Scintrex has expressed to the Company concern that some of the data in hole DDH-006B is not usable due to instrument noise and has requested that more data on hole DDH-006B be collected before finalizing a report on hole DDH-006B. The Company has agreed to their request and is working to schedule the re-logging of hole DDH-006B. In addition, the Company, at the suggestion by Scintrex, intends to schedule a surface gravity logging in the vicinity of both holes DDH-005B and DDH-006B in hopes of triangulating the near surface gravity measurements in these two holes.

Scintrex is a leader in geophysical instrumentation, providing sales and services for ground, borehole, marine and airborne applications for over 40 years. Scintrex products are used in mineral, petroleum, groundwater, environmental, academic and scientific applications and they are globally recognized as a leader in geophysical instrumentation and application.

The Company also announces that holders of 1,074,221 warrants that would have expired on November 8, 2009 (original strike price is $0.88) accepted the Company's offer to exercise those warrants for $0.10 for a total of $107,422.10. Those exercising these warrants received a replacement warrant of the same amount, exercisable for $0.15 for a period of two years from closing. All dollar amounts referred to in this press release are in Canadian currency unless otherwise noted.

Additionally, the Company has completed a non-brokered private placement of $550,136 by the issuance of 8,576,696 units. Each unit consisted of one common share and one common share purchase warrant entitling the holder to subscribe for one additional common share for $0.15 for a period of 2 years from closing. Insiders participated in respect to $413,875 rather than entering into the previously announced debt settlement on identical terms. Securities issued in respect to this private placement are subject to trading restrictions until February 10, 2010.

Funds raised will be used for continued drilling, geophysics and assaying on the Company's 50% owned Two Mile project and for general working capital.

The information contained in this news release has been prepared under the supervision of Richard Nanna (Professional Geologist, State of Washington, Certification No. 1398) a Company director and the Company's QP for this press release as defined in National Instrument 43-101.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 199,461,432

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

  • Azteca Gold Corp.
    Jon Slizza
    VP of Finance and Investor Relations
    Cell: (509) 981-2020