Golden Dynasty Resources Ltd.

Golden Dynasty Resources Ltd.

March 04, 2008 14:36 ET

Golden Dynasty Resources Limited: Columbus Option Extended

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2008) - Golden Dynasty Resources Limited ("Golden Dynasty" or the "Company") (TSX VENTURE:GLY) has reached agreement with Columbus Oil & Gas Inc. ("Columbus") to extend, for a further 6 months on a non-exclusive basis, and to amend certain terms of Golden Dynasty's option to purchase a further 63% interest in Columbus (previously announced in the Company news release of October 25, 2007). Columbus may terminate the option extension agreement at any time if it obtains alternative financing.

To purchase the 63% interest in Columbus, Golden Dynasty will be required to provide $20,000,000 USD to Columbus in either debt or equity finance.

Columbus may arrange $5,000,000 USD in third party funding to finance Columbus' project development on an interim basis and may deliver a 20% interest (comprising part of the 63% interest under the Columbus option) to such party. The third party may, but will not be required to, sell the 20% interest to Golden Dynasty for $5,000,000 USD plus interest of 2% per month.

If Golden Dynasty elects not to purchase the 20% interest it may still acquire the remaining 43% interest in Columbus by providing $15,000,000 USD to Columbus.

Columbus has further agreed that its interest in the Isis oil field may be used as collateral if debt financing is used to fund the exercise the Columbus option. If Golden Dynasty obtains the 63% interest in Columbus in addition to the 5% interest it currently owns, it agrees to share any interest it has in the Isis West field with Columbus in the proportion 68:32 without any requirement for Columbus to fund development costs. The parties agree that they may both have to dilute with respect to third parties.

This option extension agreement is subject to TSX Venture Exchange approval. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

The news release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future grants of licences, future completion of option agreements and financing plans, potential mineralization, exploration results and other future plans and objectives of Golden Dynasty are forward-looking statements that involve various risks and uncertainties. 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. Important factors that could cause actual results to differ materially from Golden Dynasty's expectations are governmental approval risks, financial risks including the ability of Golden Dynasty to obtain required funding for its proposed activities and exploration risks detailed herein and from time to time in the filings made by the Golden Dynasty with securities regulators.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Golden Dynasty Resources Limited
    Douglas Scheving
    Director/Corporate secretary
    (604) 684 7619
    (604) 684-7346 (FAX)