Kalahari Resources Inc.

Kalahari Resources Inc.

September 08, 2010 09:01 ET

Kalahari Resources Inc: Shandong Gold to Acquire 17% Interest Through Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Kalahari Resources Inc. (TSX VENTURE:KLA) (the "Company") is pleased to announce Shandong Gold Group Co. Ltd ("SD Gold") has signed a private placement agreement to purchase 60,000,000 shares for gross proceeds of $3,000,000, or an approximate 17% interest, in the Company. Proceeds from the private placement will be used primarily on the Company's Lamaque Gold Project where drilling is underway. The Company is now finalizing plans to add up to two more drills to the current program.

"This private placement represents the first step in a long-term and growing partnership with one of China's largest gold producers. We believe the transaction will be highly beneficial to both companies and their respective shareholders," comments Company Director and Interim CFO, John de Jong.

SD Gold, established in 1996, is on China's list of top 500 corporations. SD Gold owns more than 20 gold mines at home and abroad, with the Linglong Gold Mine in the Shandong Province boasting the highest accumulated gold output in Asia. Shandong is the No. 1 province in China in terms of gold reserves and output. SD Gold has received such honors including "Ten Best Brands among China's Listed Companies in Terms of Satisfaction and Market Trust by Investors," one of "China's 100 Best Growing Listed Companies," "Best Member of Shanghai Gold Exchange," and "Top 100 Listed Companies." 

The private placement is for up to 60,000,000 units for total proceeds of $3,000,000. The financing will consist of non-flow through units priced at $0.05 per unit. Each unit will consist of one non-flow through common share and one non-flow through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for two years at a price of $0.10 per share. In accordance with Exchange policies, finders' fees may be paid on the funds raised. The private placement is subject to regulatory approval. Proceeds from the private placement will be used for exploration expenditures on the Company's Lamaque property as well as for general working capital.

About Kalahari Resources Inc.

Kalahari has negotiated the right to 100% ownership of the 3,074 acre Lamaque property, located in the Abitibi Greenstone Belt, one km north of the "Cadillac Break" and immediately south of the Lamaque and Sigma mines. The Sigma mine produced approximately 4.4 million ounces of gold and the Lamaque mine, on the northern boundary of the property, produced approximately 4.5 million ounces of gold over its lifetime primarily from the 'Main' plug, a geological feature similar to the no. 4 Plug located on the property. The No. 4 Plug and another zone known as the No 10 Vein collectively have an inferred mineral resource of 1,365,000 tons grading 0.186 opt gold (cut) or 0.275 opt gold (uncut) as audited and reclassified by Watts, Griffis & McOuat's NI 43-101 Technical Report, dated September 2004 (see Sedar October 20, 2004 for details of report). Since the Company acquired the Lamaque property in 2003 over $4.5 million has been spent on exploration expenditures. There are a number of other priority gold targets that the Company plans to test during this program, many of which have never been drilled.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

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

Contact Information