TORONTO, ONTARIO--(Marketwired - June 4, 2013) - Mahdia Gold Corp. ("Mahdia" or the "Company") (CNSX:MGD) is pleased to announce that its wholly owned subsidiary Mahdia Gold Corporation (Guyana) Inc. ("MG") has executed a Term Sheet with Republic Bank (Guyana) Limited, for the equivalent of three million US dollars ($3,000,000.00 USD) for the purchase, delivery and commissioning of equipment to be used in the mining of alluvial gold at its Omai property in central Guyana. Mahdia Gold Corp has agreed to act as Guarantor.
As announced on January 24, 2013, Mahdia and MG entered into an Agreement with Roraima Investment & Consulting Services (Guyana) Inc. to facilitate the expeditious process of alluvial gold recovery.
"Processing the alluvial gold is the first step toward the Company's longer term goal of placing a large gold recovery plant back on the existing foundations at the Omai mine site," said Andre J Douchane, President and CEO. "The signing of this Term Sheet is an extremely positive event; however, we continue to seek additional funding in an effort to advance the timeline on the feasibility work."
Preliminary engineering work is underway on a 250 tonnes per hour alluvial gold recovery plant. The plant is being designed based on recent alluvial test work completed on the majority of a previously identified 578 acre mineralized alluvial deposit. Both gold and diamonds were recovered during the test work; however, the diamond deposition is not yet understood.
The Company's ultimate goals are to become self-funding, complete a feasibility for rebuilding a large mill similar to what Cambior operated at Omai, and begin development of the deep higher grade mineralization. Management continues to look at all alternatives to finance and advance the general purposes of the company, and to further enable ongoing needed economic studies. Mahdia has received a number of financing proposals which management is currently reviewing. The financing alternatives presented are in the form of debt, joint ventures, and equity solutions.
The Board has accepted the resignation of Alan (Sheik) Zaakir as a Director and Officer of Mahdia Gold Corp., Mahdia Gold Corporation (Guyana) Inc. and Mahdia Gold Services Corporation (Guyana) Inc. We wish him well in his future endeavors.
Andre Douchane CEO and President of Mahdia has been appointed a director of Mahdia Gold Corp., Mahdia Gold Corporation (Guyana) Inc. and Mahdia Gold Services Corporation (Guyana) Inc.
About Mahdia Gold Corp.
Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.
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.