SOURCE: Gondwana Energy Ltd.

January 09, 2007 09:00 ET

Company Makes EUR 400,000 Option Payment

TAMPERE, FINLAND -- (MARKET WIRE) -- January 9, 2007 -- Gondwana Energy Ltd. (OTCBB: GNWA) is pleased to announced it has paid an option payment of EUR 400,000 (euros) under our recent agreement to purchase options to acquire four advanced mining properties in Finland.

On November 28, 2006 the Company closed on its agreement to purchase 100 percent of the issued and outstanding ordinary shares of FinMetal Mining Oy, a company organized pursuant to the corporate laws of Finland.

FinMetal Mining OY owns the option to acquire a 100% interest in 4 different mineral properties known as Petrovaara, Poskijärvi-Kokka, Rautavaara and Tainiovaara along with all existing property data. This option is from Magnus Minerals Ltd., a Finnish-based company focused on advanced mineral exploration in Finland.

The option payments are for a total of EUR 1,000,000 for each property over a period of 4 years. Currently, one euro equals approximately 1.30 US Dollars. The option payments are to be paid annually at the beginning of each year as follows: 1st year EUR 100,000, 2nd year EUR 100,000, 3rd year EUR 300,000 and 4th year EUR 500,000 for a total of EUR 1,000,000 per property, a total of 4 million euros if all 4 properties are acquired fully. Also, FinMetal must satisfy a work commitment of EUR 1,000,000 on each property of which 25% must be conducted annually. All properties are subject to a 2% NSR.

The EUR 400,000 owing on the four properties for the first year, as outlined above, has now been paid in full and management is in the process of analyzing the historical data available on each property. Once completed, the company intends to initiate exploration and development programs consisting of advanced geophysics and extensive drilling of primary target zones where mineralization is known to exist. The company continues to evaluate additional acquisitions.

The Company has recently called a Special Meeting of Shareholders of Gondwana Energy, Ltd. to change the name of the company to FinMetal Mining Ltd. The meeting will be held on Tuesday, January 23, 2007, commencing at 10:00 a.m. local time, at the offices of Ballard Spahr Andrews & Ingersoll, LLP, 1225 17th Street, Suite 2300, Denver, Colorado 80202 (telephone: (303) 292-2400). Only shareholders of record at the close of business on December 11, 2006, the record date, will be entitled to notice of, and to vote at, the Special Meeting and any adjournment thereof.

On Behalf of the Board:

Daniel Hunter


This release contains forward-looking statements that are based on the beliefs of Gondwana Energy Ltd.'s management and reflect Gondwana Energy Ltd.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of Gondwana Energy Ltd. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.

Contact Information

  • Contact:
    Daniel Hunter
    Gondwana Energy Ltd.
    Suite 700, One Executive Place
    1816 Crowchild Trail N.W.
    Calgary, AB, Canada T2M 3Y7
    B: 403-313-8985
    F: 403-220-1389