SOURCE: Grenville Gold Corporation

March 13, 2007 17:52 ET

Grenville Gold Outlines Restructured Peruvian Subsidiary Purchase Agreement and Peru Land Package

VANCOUVER, BC -- (MARKET WIRE) -- March 13, 2007 -- Grenville Gold Corporation ("Grenville" or "the Company") (TSX-V: GVG) (PINKSHEETS: GVLGF) announces it has restructured its previously announced agreements to purchase two properties in Peru and a controlling interest in a Peruvian company, Inversiones Mineras Alexander S.A.C. (the "Subsidiary"). No new payments or share issuances will result from the restructuring of the transaction. The purpose of restructuring the transaction is to consolidate, focus and better organize the business activities of Grenville in Peru.

It was previously announced May 3, 2006 and July 11, 2006 that Grenville will acquire up to a 90% interest the Chorobol Property located near Trujillo, Peru and up to a 90% interest in the Espanola Property located in the Province of Canete. It was also previously announced that Grenville would acquire 70%, with an option to purchase another 20% of the shares of the Subsidiary. The remaining 10% shares of Subsidiary will continue to be owned by Minera Prospex S.A., which is jointly owned by Mr. Len De Melt, a director of the Company, and Mr. Alexander Ernesto Viduarre Otayza.

As a result of restructuring the transaction, the Subsidiary will hold the mineral titles to the Chorobol, Espanola and Silveria Properties and act as Grenville's agent regarding its current agreements with the underlying owners of three properties in the Rosa Maria area. However, the overall terms of the purchase will not change and as previously announced, will be:

1) Grenville will issue two (2) million shares, one (1) million shares each to Mr. Len De Melt and Mr. Alexander Ernesto Viduarre Otayza (the 'Vendors') for 70% of the shares of the Subsidiary. The Grenville shares are to be issued in three tranches over a two-year period consisting of:

* 333,333 each, 666,666 total in the tranche at Closing;

* 333,333 each, 666,666 total in the tranche, one (1) year from the Closing date; and

* 333,334 each, 666,668 total in the tranche, two (2) years from the Closing date.

2) A payment of $1,000 USD for each property was paid upon signing the letters of intent (signed May 3, 2006 and July 11, 2006, respectively) and $ 10,000 USD for each property is to be paid upon closing.

3) The Vendors grant a two (2) year option to Grenville to purchase an additional 20% of the outstanding shares for a total payment of $69,000 USD each.

4) The legal costs of $3000 USD for the purchase of the Subsidiary will be covered by Grenville.

In total, as previously announced, Grenville will issue 2 million shares and pay a total of $163,000 for 90% of the shares of the Subsidiary. The acquisition is subject to acceptance for filing by the TSX Venture Exchange.

Subsequent to the purchase of Chorobol and Espanola, Grenville proceeded with the purchase of the Rosa Maria properties (adjacent to Espanola) and the Silveria Properties which include the Pacococho Mine, Millotingo Mine, Germania Mine and the Silveria Mine.

The following summary for the general knowledge of shareholders and partners summarizes the properties currently held under the Subsidiary:

The Silveria Property

The Silveria package currently totals 1620.5 Ha. and includes the previously announced land package located in and around the Pacacocho Mine, Millotingo Mine, Germania Mine and the Silveria Mine all located in the San Mateo District of Peru. Previously referred to as the San Mateo project or as individual mines, the Company has now re-named the entire project the Silveria properties and is expecting an assessment report on the project from Minefill Services Inc. which will guide future work on the project.

The Chorobol Property

The Chorobol properties are located in the Department of La Libertad, 65 km southeast of Trujillo, Peru and 35 km from the Coast. Alexander controls 1,298 Ha in the area. Grenville's attempts to re-negotiate the purchase agreement of the adjacent Santa Christina Property were not successful and terminated on February 15, 2007. These discussions and the limited availability of a qualified independent geologist have delayed the completion of a 43-101 report. Further developments regarding the Chorobol Property will be reported when information becomes available.

The Espanola/Rosa Maria Property

Inversiones Mineras Alexander S.A.C. has signed agreements to potentially acquire up to 95 per cent of the mineral rights for 7,196,617 Ha located 100 kilometres southeast of the city of Lima in the province of Canete. The Company has engaged Luc Pigeon, P. Eng. to prepare a technical report in compliance with National Instrument 43-101 standards.

To acquire these claims, the Subsidiary will enter into five separate agreements with various vendors. These properties can be divided into two groups, the Rosa Maria and the Espanola claims. To acquire the Rosa Maria properties, the Subsidiary will enter into three agreements with arm's-length individuals and will pay a total of $100,000 USD over a period of one year; comprising $45,000 USD upon execution of the acquisition agreements, $15,000 USD six months later and the remaining $40,000 USD one year after the initial close.

In addition, the Espanola properties are to be purchased from Mr. De Melt and Mr. Viduarre as part of the acquisition of the Subsidiary, as detailed above.

About Grenville Gold Corporation

Grenville (www.grenvillegold.com) is a junior resource company seeking prospective properties in Peru and Ecuador. The Company has three subsidiaries: Inversiones Mineras Alexander S.A.C. in Peru, Minera MineGreville S.A. in Ecuador and Parkman Diamond Corp. in Ontario, Canada. Grenville plans to leverage the experience of its Board and Management in exploration and mining to develop its growth strategy in North and South America. For further information contact 604-669-8842 or info@grenvillegold.com.

On behalf of the Board of Directors,

"A. Paul Gill"
President & CEO
Ph. 604-669-8842
info@grenvillegold.com    

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. All statements, other than statements of historical fact, included herein 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 the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission. We seek safe harbour.

Contact Information

  • Contact:

    A. Paul Gill
    President & CEO
    Ph. 604-669-8842
    Email Contact