SOURCE: MGM Mineral Resources Inc.

November 09, 2006 10:00 ET

MGM Mineral Resources Acquires La Victoria Mine

Company Adds Yet Another Asset to Its Portfolio of Producing Properties and Is in Current Negotiations for Another Property, La Dorada

TORONTO -- (MARKET WIRE) -- November 9, 2006 -- Metro Gold Mines Mineral Resources Inc. (PINKSHEETS: MGMX) is a growing gold mining company engaged in the acquisition and development of production properties in South and Central America.

As per the Company's ongoing Press Releases, Metro Gold Mines has recently completed negotiations with various properties which continue expanding the Company's portfolio, all while the extraction and production stages of the Manantiales Mine push forward. The most recent negotiations were completed pertaining to La Victoria Mine, located adjacent to the other known MGMX properties.

"The Company continues to acquire additional ventures and properties which will enable us to explore, produce and raise revenues in the near future on a much larger scale," said Jairo Giraldo. "La Victoria Mine is just an additional step in our intricate set of goals and Company's future direction. Additionally, we have commenced negotiations with a mine called La Dorada. All of our efforts are directed into the acquisition of mines and reaching production levels to increase shareholder and company value."

The negotiations for La Dorada Mine have commenced. La Dorada is a property of close to 100 acres and is located in the same municipality as La Esperanza, Segovia, and is owned by another Director of MGMX which will facilitate the transaction.

MGM Mineral Resources is looking to acquire 100% rights to this land and the current land owner, Director of MGMX, is looking to contribute towards the progress of the Company by negotiating the rights to the lands and placing them under the Company's umbrella.

The Company will continue to confirm any and all news of current acquisitions and production, specifically in relation to the Manantiales Mine, all which targets are being met. A target of 45 to 60 days was given regarding the extraction of gold and the Company confirms that this target will be met in time.

About MGM Mineral Resources (PINKSHEETS: MGMX)

Metro Gold Mines Mineral Resources Inc. is a growing, expertly managed gold mining company focused on acquiring and producing an impressive portfolio of exploration and production properties in South and Central America. MGM Mineral Resources is working to establish itself as a world-class gold company, capitalizing on smart acquisitions, breakthrough technology, modernized operations, deep industry expertise and a strong gold market to cost-effectively produce high quality gold. The company has identified a significant opportunity to exploit proven but under-developed mineral resources in Colombia. MGM Mineral Resources was initially targeting the richest gold zone in Colombia, Segovia, but, is now extending to other areas throughout the country. For more information please visit:

Forward-Looking Statements

Statements contained in this news release, which are not historical facts, are forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 that involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things: volatility and sensitivity to market prices for gold; replacement of reserves; procurement of required capital equipment and operating parts and supplies; equipment failure; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; imprecision in reserve estimates; success of future exploration and development initiatives; competition; operating performance of the facilities; environmental and safety risks including increased regulatory burdens; seismic activity, weather and other natural phenomena; failure to obtain necessary permits and approvals from government authorities; changes in government regulations and policies including tax and trade laws and policies; ability to maintain and further improve positive labor relations; and other development and operating risks. Although MGM Mineral Resources believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report. The company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    Mr. Kenneth Lamb