TORONTO, ONTARIO--(Marketwire - Oct. 22, 2012) - Mahdia Gold Corp. (the "Company") (CNSX:MGD) is pleased to announce the first phase of the expansion of its land holdings in the Omai/Essequibo River area with the execution of an option to acquire 100% of the mineral rights represented by 18 (eighteen) Prospecting Permits Mediums Scale with a total aggregate surface area of 21,406 acres (the "OMAI EXPANSION"). The agreement, negotiated with South American Mining Inc. ('Vendor'), a private Guyana Company grants, through powers of attorney pursuant to Guyana law, the right to explore and, as warranted convert the rights to Mining Permits or Mining Licenses and thereafter acquire the entire land holding. The transaction represents a significant expansion of the boundaries of the Company's current assets in the Omai District and the corresponding exploration and development opportunity thereupon. OMAI EXPANSION is located in a well known gold bearing region and will be evaluated as part of the Company's ongoing redevelopment of the Omai Prospecting License.
This expands the Company's land for exploration and mining purposes, by a multiple of almost 4 times to 28,646 acres in the same area.
The additional exploration opportunity covers regional geological contacts and gold target in bedrock, oxide/ saprolite and alluvial / colluvial environments which the Company's technical team has selected as high priority. Management of the Company expects this expansion of opportunity to provide significant enhancement in shareholder value during the medium and long term development of the district. OMAI EXPANSION was closed to modern exploration throughout the previous life cycle of the Omai and exploration work will be coordinated with optimization of the Company's main holdings without the obligation of minimum exploration expenditures associated with Prospecting Licences.
Including an initial payment of Fifty Thousand United States Dollars ($50,000.00) the total consideration for the post option acquisition of 100% of OMAI EXPANSION, will be One Million United States Dollars ($1,000,000.00) and Two Million (2,000,000) Shares of Mahdia Gold Corp.
The Company's qualified person, David Bending, the President of the Company, has reviewed the technical content of this news release.
About Mahdia Gold Corp.
Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation 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 expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.
Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.