SOURCE: Lateegra Gold Corp.

September 14, 2007 17:52 ET

Lateegra Announces Picacho Property Matter

VANCOUVER, BC--(Marketwire - September 14, 2007) - Lateegra (TSX-V: LRG) has received a termination notice from Tara Gold Resources Corp. ("Tara") respecting the Company's option to earn an interest in the Picacho property located in Sonora, Mexico.

The Board of Directors of the Company has decided to suspend payments to Tara with respect to the Picacho Option Agreement on the basis that the title to the property has not yet been delivered to Lateegra. The Company understands that Tara is taking the necessary steps to clarify title, however, it has not yet received assurances that Tara has done so.

Exploration programs planned by the Company were delayed for several months waiting for the title issue to be resolved. Due to this delay, the property is still in an early exploration stage that does not justify the escalating payments required under the option agreement. Tara has indicated that it is inflexible on the payment schedule because of an underlying agreement it has with the vendor.

The Company is reserving the right to review the situation in the short term in order to decide whether to continue to exercise its rights under the Option Agreement or possibly to commence legal proceedings against Tara for failing amongst other things to provide secure title as provided in the Option Agreement.

The company had prepared additional documentation respecting the completion of outstanding matters related to a revised Option Agreement for execution by Tara and its subsidiary. The Company has engaged Mexican counsel to provide advice respecting the title situation. Extensive negotiations with Tara have failed to resolve the outstanding issues and the Company is of the view that it had no alternative but to suspend payments under the Option Agreement until the outstanding matters are resolved to its satisfaction.


"Chris Verrico,"
President, CEO and Director


Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information

  • Contact:
    Lateegra Gold Corp.
    Tel: 604-669-9330
    Fax: 604-669-9335
    Toll Free: 1-866-669-9377
    Suite 1128 – 789 West Pender St.
    Vancouver, B.C., Canada V6C 1H2