High Desert Gold Corporation
TSX VENTURE : HDG
PINK SHEETS : HDGCF

High Desert Gold Corporation

October 06, 2011 18:13 ET

High Desert Gold Announces Closing of Qualifying Transaction by Highvista Gold and Sale by High Desert of Partial Interest in Highvista

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2011) - High Desert Gold Corporation (TSX VENTURE:HDG)(PINK SHEETS:HDGCF)

Sale of Partial Interest in Highvista

High Desert Gold Corporation ("HDG" or the "Company") is pleased to announce that it sold today, on a private placement basis, 640,000 common shares of Highvista Gold Corp. and 320,000 purchase options (the "Purchase Options") for gross proceeds of $320,000 (the "Private Placement"). Following the Qualifying Transaction (as defined below), each Purchase Option entitles the holder thereof to acquire from HDG one common share of Highvista Gold Inc. upon payment of $0.70 until October 6, 2013. Pursuant to the Private Placement, the Company also issued 44,800 compensation options each entitling the holder thereof to acquire from HDG one common share of Highvista Gold Inc. upon payment of $0.50 until October 6, 2012 (the "Compensation Options").

Highvista Gold Corp. is the company to which HDG transferred its interest in the Canasta Dorada property. See HDG PR10-16 October 7, 2010 and HDG PR11-02 February 7, 2011. Today Highvista Gold Corp. completed its going public transaction with Triumph Ventures Corp. As result of the transaction Triumph is now known as Highvista Gold Inc. The transaction constituted Highvista Gold Inc.'s qualifying transaction (the "Qualifying Transaction") under the policies of the TSX Venture Exchange, all as set out in the filing statement dated September 27, 2011, which is available on SEDAR at www.sedar.com under the profile of Highvista Gold Inc.

Early Warning

Pursuant to the Qualifying Transaction, HDG acquired ownership of 10,683,125 common shares of Highvista Gold Inc. ("Common Shares"), representing approximately 34.8% of the total issued and outstanding Common Shares, in exchange for the 10,683,125 common shares of Highvista Gold Corp. held by HDG prior to the Qualifying Transaction.

HDG originally acquired its interest in Highvista Gold Corp. in exchange for HDG's interest in the Canasta Dorada property. HDG intends to hold its Common Shares of Highvista Gold Inc. for investment purposes. Depending on market or other conditions, and subject to compliance with the regulatory escrow agreement and contractual lock-up undertaking entered into by HDG, the Company may sell all or a portion of the Common Shares. The Company is obligated to sell up to 364,800 Common Shares upon exercise of the Purchase Options and the Compensation Options, in accordance with their respective terms.

ABOUT HIGH DESERT GOLD

The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The major properties held by HDG are the Gold Springs gold project situated along the border between Utah and Nevada and the San Antonio project in Sonora, Mexico.

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 release.

Contact Information

  • For further information, or to obtain a copy of the
    Company's early warning report, please contact:
    High Desert Gold Corporation
    Richard Doran, Executive Vice President
    (303) 758-2063 (FAX)
    Tel: (303) 584-0608
    rdoran@hdggold.com