La Quinta Resources Corporation

La Quinta Resources Corporation

April 23, 2008 13:42 ET

La Quinta Signs Final Agreements for the Acquisition of 7,010 Sq Km in Maniema South Kivu Gold Belt-DRC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 23, 2008) - La Quinta Resources Corporation, ("La Quinta," "LAQ," or the "Company") (TSX VENTURE:LAQ) together with its partner in the Democratic Republic of Congo, Wa Balengela Kasai Investments Congo sprl, (WBK) are pleased to announce that they have signed formal agreements completing the formation of a Joint Venture Company which will option and explore a contiguous group of 32 exploration licences, or Permis de Recherche, granted to WBK by the Cadastre Minier under the Mining Code of the Democratic Republic of Congo. The Research Permits or Exploration Licenses are located in Maniema and South Kivu Provinces in South Eastern DRC abutting and covering all the ground between Banro Corporation's (TSX:BAA) Lugushwa and Namoya gold properties. The WBK Licenses cover some 7,010 square kilometres of the highly prospective Twangiza - Namoya gold belt and extends some 120 kilometres to the West. Banro Corporation has indicated the discovery of multi-million ounce deposits of gold on both Lugushwa and Namoya.

Malcolm Swallow, La Quinta's Chairman said "Both we and WBK are delighted to have finally completed this transaction and we both look forward to working together to commence exploration on such a highly prospective piece of ground in a known gold belt, abutting and between recently discovered major gold deposits. The issuance of the signed Exploration Permits to WBK on March 10th 2008 by the Congolese Government removes any uncertainty as to title and we look forward to working with our partners Wa Balengela Kasai to outline and discover new gold projects in this highly prospective gold belt."

This transaction was originally contemplated in an MOU signed between the parties in August 2006 (See Press Release dated August 28, 2006) and has been delayed pending completion of formal agreements and the receipt by WBK of the signed Permis de Recherche for the 32 exploration licenses which were finally received by WBK on the 10th of March 2008, signed by the DRC Government. The Option and Joint venture Agreement was conditionally approved by the TSXV for filing in October 2007, and the signed Agreements have now been submitted to the TSXV for final acceptance.

The formal Agreements give La Quinta the option to earn up to 80% in the Joint Venture Company with WBK, by funding US$ 10 million in exploration expenditure over five years, with a minimum expenditure of $2 million per year. Upon completion of a feasibility study within the five year period, the Joint Venture will be entitled develop the properties within the 7,010 square kilometre exploration licence areas by converting them to an Exploitation Licence or licences, in accordance with the Mining Code of the Democratic Republic of Congo.

Upon the commencement of the Joint Venture, La Quinta will hold a 10% interest in the joint venture company and WBK will hold 90% and La Quinta shall have the right to increase its interest in the joint venture company to an 80% interest by making payments to WBK totalling US$1,500,000 and issuing 8,000,000 shares of La Quinta over the first three years of the agreement. Upon completion of all share issuances and cash payments, La Quinta will be vested with an 80% interest and WBK with a 20% interest in the Joint Venture Company.

During the exploration period ownership of the concessions shall remain vested with WBK and will be transferred to the Joint Venture Company on completion of the Feasibility Study as contemplated in the formal documentation. WBK shall be responsible with assisting the Joint Venture Company with government relations, local liaison and local management and expediting of the projects in the DRC.

On any gold production, the Joint Venture Company shall pay WBK a net smelter return of 2.5%. La Quinta has agreed to pay Finders or Agents fees in respect of the transaction in the amount of 550,000 shares payable by La Quinta in six instalments, over the first three years of the agreement; prorated and made at the same time as La Quinta is required to make share payments to WBK. There is an Area of Mutual Interest (AMI) established stretching 20 kilometres from the outside borders of any of the rights held in the Joint Venture Company. The parties have also agreed that the Joint Venture Company will establish operating, local relations and finance committees with representatives of each of the parties. As part of the agreement, LAQ will offer two representatives of WBK representation on the Board of LAQ.

The WBK properties to be optioned and acquired by the Joint Venture Company will form the primary focus of the Company's exploration work in Congo. The Company is currently working adjacent to the WBK Licences on the Kampene gold project also in DRC. (See Press Releases dated April 17, 2007) In addition the Company is working in Mexico on the Orofino Gold Project in Sonora State. The Company has already established a considerable presence in the DRC and has exploration staff and equipment ready to commence work immediately on the much larger Maniema - South Kivu area.

A map showing the location and extent of the exploration leases and the overall area's relationship to the Twangiza - Namoya gold belt, plus certified copies of the relevant Permis de Recherche can be found on the Company's web site at

Malcolm Swallow, the Company's Chairman and CEO and a Qualified Person, both in BC, Canada and in Europe, acted as the Qualified Person for this news release, being a signatory of the final agreements and also being responsible for the acquisition of this property.

This Press Release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.

On Behalf of the board

Malcolm JA Swallow, Chairman and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release, which has been prepared by management.

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