GHG Resources Limited

December 20, 2006 16:48 ET

GHG, Global Copper, Sign Formal Option on Vizcachitas

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 20, 2006) - GHG Resources Limited ("GHG") (TSX VENTURE:GHG) wishes to update its news release dated November 15, 2006 wherein it announced that it has signed a letter of intent with Global Copper Corp. ("Global") for GHG to be granted an option on Global's interest in the Vizcachitas property located in Region IV, Chile. Global is listed on the TSX under the symbol GLQ.

GHG will be acquiring Global's wholly owned Bahamian subsidiary which in turns wholly owns a Chilean company which holds the rights and interests in the Vizcachitas copper property.

As part of the consideration payable to exercise the option, GHG will no longer issue shares to Global equivalent to a 13% interest in GHG on a fully diluted and post transaction financing basis, but rather will issue to Global 6,280,000 shares and 3,900,000 share purchase warrants in the capital of the Issuer. Each warrant will entitle Global to acquire one additional share of the Issuer exercisable for a period of three years from the date of issuance at $1.00 per share.

GHG has today paid a US$400,000 deposit toward the purchase price. GHG is undertaking a private placement to raise up to $12,000,000 in order to pay the balance (US$10,000,000) of the cash portion of the purchase price, which is due on closing which is expected to be in January 2007. All other terms and conditions remain the same.

A finder's fee of 1,500,000 common shares will be payable by the Issuer in connection with the transaction.

Global and the Issuer signed a formal option agreement effective today replacing the original letter of intent. The transaction is subject to regulatory approval.


Christopher Fung, President and Director

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

Contact Information

  • GHG Resources Limited
    Christopher Fung
    President and Director
    (604) 662-3230
    (604) 682-4309 (FAX)