Druk Capital Partners Inc.

Druk Capital Partners Inc.

June 20, 2011 12:07 ET

Druk Capital Signs Letter of Intent To Acquire TransAfrican Gold Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2011) - Druk Capital Partners Inc. ("Druk" or the "Company") (TSX VENTURE:DRU.P) announces it has entered into a Letter of Intent ("LOI") to acquire 100 per cent of the outstanding securities of TransAfrican Gold Inc. ("TransAfrican"). TransAfrican is a British Columbia based, privately held mineral exploration and development company whose principal assets are located in the country of Tanzania. The acquisition of TransAfrican and its assets, which remains subject to final due diligence and completion of a Definitive Agreement between the parties, is intended to be Druk's qualifying transaction under TSX Venture Exchange ("TSXV") Policy 2.4. Upon completion of the proposed transaction, the resulting issuer, within the meaning of TSXV policies will apply to be listed on the TSXV as a Tier 1 or 2 mining issuer.

TransAfrican is a private company incorporated under the Canada Business Corporations Act and based in Vancouver, British Columbia. Founded in 2009 to facilitate the acquisition of certain early stage to advanced gold exploration projects on the African Continent and more recently focusing in the famous gold-producing Lake Victoria Greenstone Belt in Tanzania, Eastern Africa.

TransAfrican currently controls 18 mineral exploration and development licenses in Tanzania. The projects range from early stage exploration properties to former producing gold assets and advanced exploration projects. TransAfrican's properties are principally located in the Archean greenstone sequences of the Tanzania Craton in Tanzania. This extensive rock package, like the greenstone sequences of Canada, Australia, South Africa and Western Africa host a number of world class gold deposits that include the Geita, Bulyanhula, Tarkwa and North Mara deposits. The majority of TransAfrican's assets are located within the same sequences which host these major gold operations.

The proposed transaction

The LOI contemplates a transaction whereby Druk may acquire all of the outstanding shares of TransAfrican via a share exchange, such that TransAfrican will become a wholly owned subsidiary of Druk. The exact exchange ratio and therefore number of shares to be issued by Druk to acquire TransAfrican remains subject to certain due diligence considerations. This information will be provided to shareholders once the due diligence process has been completed and the parties have reached a Definitive Agreement.

Management and directors of the resulting company will incorporate the strengths of both Druk and TransAfrican and certain third parties who in the opinion of Druk and TransAfrican will be of maximum benefit to the Company and acceptable to applicable regulatory authorities.

Both parties are currently making best efforts to complete the due diligence process and expedite the signing of a Definitive Agreement. As part of the due diligence process Druk has granted to TransAfrican a refundable loan as commitment of good faith.

The contemplated Definitive Agreement between the parties and proposed transaction will be subject to several conditions including but not limited to, completion of satisfactory due diligence and the receipt of required third party consents and the approval of the shareholders of TransAfrican. The transaction as proposed is an arm-length transaction under the policies of the TSXV and therefore will not require the separate approval of the shareholders of Druk.

In accordance with TSXV policies, Druk's common shares are currently halted from trading. The Druk common shares may resume trading following TSXV review of the required documentation, or the shares may remain halted until completion or termination of the transaction.

Completion of the transaction is subject to a number of conditions, including but not limited to, TSXV acceptance. The transaction cannot close until the required approval is obtained; and there is no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

The Company is investigating whether sponsorship will be required in connection with the transaction. No agreement for sponsorship has been entered into, and any agreement to sponsor should not be construed as any assurance with respect to the merits of the transaction or the likelihood of completion.

On behalf of the board of directors of DRUK CAPITAL PARTNERS INC.

Kelly Klatik, President and CEO

This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the proposed qualifying transaction are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Specifically, there is no assurance the proposed qualifying transaction will close on the basis as outlined above, or at all. There is no assurance the Company's due diligence of TransAfrican will be satisfactory; or that all approvals to the transaction will be received. Druk may be required to raise additional capital in conjunction with the acquisition of TransAfrican, and there is no guarantee such funding will be available on terms acceptable to Druk, or at all. Trading in the securities of the Company should be considered highly speculative.All of the Company's public disclosure filings may be accessed via www.sedar.com.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

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 press release.

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