GoldSands Development Company
OTCBB : GSDC
OTCQB : GSDC

GoldSands Development Company

April 11, 2012 12:16 ET

GoldSands Signs Agreements with Tisdale Mining, LLC

LIMA, PERU--(Marketwire - April 11, 2012) - GoldSands Development Company ("GoldSands") (OTCBB:GSDC) (OTCQB:GSDC) is pleased to announce the signing of an agreement with Tisdale Mining, LLC ("Tisdale") of the USA, whereby GoldSands has agreed to grant to Tisdale the right to develop and conduct gold mining operations on two selected concessions from the GoldSands portfolio (the "Tisdale-Option Concessions"). The Tisdale-Option Concessions together constitute approximately 2,000 hectares of property.

At the same time, GoldSands, Tisdale and Mineros S.A. ("Mineros") have entered into a separate Consent Agreement whereby the three parties have agreed to share the economic benefits from Tisdale's development and operation of the Tisdale-Option Concessions.

GoldSands and Mineros previously entered into an agreement on January 20, 2012, whereby GoldSands granted to Mineros an option (the "Mineros Option") to acquire an 85% interest in 50 mineral rights concessions beneficially owned by GoldSands (the "Mineros-Option Concessions"). Under the Mineros Option, Mineros may acquire an 85% interest in the Mineral-Option Concessions, which will be transferred to a new special purpose entity (the "SPE"). If Mineros exercises the Mineros Option, GoldSands will hold a 15% interest in the SPE. The Mineros-Option Concessions include the Tisdale-Option Concessions.

Under the Consent Agreement, GoldSands will receive an additional 5% share of all gold production from the Tisdale-Option Concessions, as well as an annual payment of $50,000. These economic benefits will be in addition to GoldSands' 15% ownership interest in the SPE.

Tisdale Mining, LLC is a privately owned company based in Los Angeles, California, USA. Tisdale has a mandate to develop metals mining projects in South America and West Africa. Tisdale's goal is to create value for its stakeholders through responsible and sustainable mining operations, with a focus on local development, worker safety and respect for the environment.

Mineros S. A., a company publicly traded on the Colombia Stock Exchange, is Colombia's largest gold producer, and one of the world's largest producers of alluvial gold. Mineros' 2011 gold production was primarily from alluvial mining projects, with an annual alluvial gold yield of approximately 95,231 ounces, compared to approximately 20,652 ounces from their underground mining operations. For the last several years, Mineros has actively been seeking additional prospective gold projects in South America. Mineros' 2011 budget for operational expansion was US$48.411 million, of which US$25.814 million is solely for new exploration activities. Under the current agreement, Mineros has the right to conduct due diligence investigations through April 30, 2012.

Goldsands President and CEO, Dr. Michael Stocker, remarked: "Social programs and environmental responsibility play a key role for us and for Mineros, and we were pleased to learn that Tisdale shares those same business principles. Accordingly, those principles were incorporated as an integral component our new agreements involving Tisdale. We would also highlight the fact that a second mining company has expressed an interest, and indeed has entered into formal legal agreements, to explore the potential of GoldSands' concessions in Peru.

The Company can provide no assurance that Tisdale will exercise its option on the relevant mining concessions or that the new arrangements involving Tisdale will result in actual gold production.

About GoldSands Development Company

The Company's goal is to fully develop its Peruvian GoldSands project. The Company's GoldSands project in Peru consists of options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. For thousands of years, the waters of the Santiago and the Marañón rivers have been carving their way through the gold-rich mountain canyons of the Andes, carrying off gold and depositing it, as the river comes out into the plain, in the loose gravels and sands - GoldSands - in the area the Company now controls.

Results from test holes drilled during GoldSands' exploratory drill program indicated the presence of alluvial gold in economical quantities. While the Company considers results from the drill programs and recently completed test mining production to be favorable, the Company cautions that these results do not indicate the presence of a commercially viable mineral deposit over most of the area and an extensive amount of further exploration and funding is needed to determine the full feasibility of the project.

The Company completed a social baseline study involving a series of meetings with local residents and other stakeholders in the region. The Company intends to work in an equitable, transparent, and socially responsible manner with local communities, suppliers and employees. The Company is committed to acting as stewards of the local and regional ecological systems, behaving in an environmentally responsible way, leaving a minimal "footprint" as a result of our operations. The Company is working towards building trust and sustaining relationships that go well beyond mining operations.

Further information about GoldSands Development Company may be found at: www.goldsandsco.com.

On behalf of the Board:

Dr. Michael Stocker - CEO

GoldSands Development Company

Disclaimer

This release contains forward-looking statements that are based on beliefs of GoldSands Development Company management and reflect GoldSands Development Company'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 we use 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 GoldSands Development Company 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. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, GoldSands Development Company and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.

Contact Information

  • GoldSands Development Company
    Investor Inquiries:
    North America Toll Free: 800-215-0811
    360-339-7309
    info@goldsandsco.com