Luiri Gold Limited
TSX VENTURE : LGL
ASX : LGM

Luiri Gold Limited

February 23, 2011 12:54 ET

Luiri Gold Closes Transaction With Carlton Resources Plc

TORONTO, CANADA--(Marketwire - Feb. 23, 2011) - Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM) ("Luiri" or the "Company") is pleased to announce that it has completed the transaction pursuant to the Carlton Agreement (Luiri News Release February 14, 2011). Carlton Resources Plc ("Carlton") has finalized the private placement of 5,875,000 common shares of the Company at a price of A$0.15 per share (the "Private Placement") and four existing directors of the Company have resigned immediately following the completion of the Private Placement and have been replaced by three new directors nominated by Carlton.

A total of 5,875,000 fully paid common shares were issued pursuant to the Private Placement at a price of A$0.15 per share resulting in gross proceeds to Luiri of A$881,250. These shares will be traded in the form of CHESS Depositary Interests ("CDIs") and rank equally in all respects to existing quoted CDIs on the Australian Stock Exchange ("ASX") and Luiri shares listed on the TSX Venture Exchange. No finder's fees were paid in connection with the private placement. The CDI's are subject to a statutory hold period of four months from the date of closing.

The funds will be used as working capital for Luiri.

Carlton's shareholding in Luiri represents approximately 5% of the issued shares of the Company.

New Board Appointments

Effective on the February 23, 2011, each of Michael Sperinck, Peter Tanham, Gordon Richards and Richards Billingsley have resigned from the board of directors of Luiri. Melissa Sturgess has been appointed as Executive Chairman and Mike Langoulant and Evan Kirby as directors of Luiri. Each of the new directors is also a director of Nyota Minerals Limited. Melissa Sturgess resigned as a director of Carlton on the 12th February, 2011.

Company Direction

The New Directors will continue to work to resolve the tenure issues surrounding Mining License LML 48 in Zambia. It is the Company's intention to grow via a regional exploration programme which would run parallel to the development of LML 48 following resolution of the tenure issues.

ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding plans for the completion of a private placement financing and other future plans and objectives of the Company 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 plans or expectations include market prices, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

NONE OF THE TSX VENTURE EXCHANGE, ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), OR THE ASX HAS REVIEWED THIS RELEASE AND NONE OF THEM ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Luiri Gold Limited
    Melissa Sturgess
    +44 7825 551 397
    or
    Luiri Gold Limited
    Rob Brown
    +61 417 793 733