SOURCE: MGM Mineral Resources

June 01, 2006 15:45 ET

MGM Mineral Resources Expands Operations

Gold Company Opens New Offices, Launches New Website and Finalizes Permits for the Manantiales Property

TORONTO -- (MARKET WIRE) -- June 1, 2006 -- Metro Gold Mines Mineral Resources Inc. (PINKSHEETS: MGMX), a growing gold mining company engaged in the acquisition and development of production properties in South and Central America, has expanded operations by opening new offices, launching a new corporate website, while moving forward with La Esperanza and Manantiales properties.

"We have been overwhelmed over the last few weeks," said Kenneth Lamb, President of MGM Mineral Resources. "Due to many ongoing aspects of our business and the exciting developments on our properties, we neglected some of our administration duties. These are all symptoms of growing pains from a Company that is rapidly expanding. We feel that we have addressed these issues and now our team is ready to help create shareholder value. I feel our shareholders will be pleasantly surprised when our full story unfolds over the course of the next few months."

MGM Mineral Resources has established corporate operations in both Colombia and North America. The company can be contacted at its offices in the following locations:

North American Office
1 YONGE STREET
SUITE 1801
TORONTO, ONTARIO
M5E 1W7
TEL   416-214-7847
Colombian Office
CARRERA 46 # 7 - 227
MEDELLIN, COLOMBIA
TEL   574-325-7818
The company has also launched a new website, which can be viewed at: www.mgmmining.com

The new site offers expanded functionality and the latest information regarding new acquisitions, current operations, management, corporate objectives and the rich gold zone in Colombia where MGM Mineral Resources is mining.

In addition, the company continues to work with Pink Sheets in order to resume quotation services on Pink Sheets. Mr. Lamb continues, "All information has been filed, translated and finalized in attempts to reach full quoting status on Pink Sheets. Unfortunately due to the abuses of certain shareholders we have been put in a position of going above and beyond the norm in regards to disclosure. As a company, we are fine with this and will apply this higher standard in all our future correspondences with shareholders and with the investment community. This will only strengthen our visibility of being a Company committed to building shareholder value and in becoming a responsible and respected issuer."

Such things have not stopped the Company from their onwards push to success, as they have continued updating the 15C211 form and can be found listed on Pink Sheets. In fact, they have posted the first quarter results from 2006.

"Based on our constant updates of the 15C211, our shareholders will see that Metro Gold Mines is immersed in operations. Our Company is finalizing all property negotiations, while attaining and securing the necessary mining permits with Manantiales," said Jairo Giraldo, C.E.O. "We would like to complete the transaction and turn the Letter of Intent into a confirmed acquisition." Mr. Giraldo added that the transaction will be completed within the week.

There are also additional administrative changes that have occurred within the company pertaining to new staff. This includes finalizing a contract with another highly experienced, well-renowned Geologist to work on the present mines, as well as all future acquisitions. Specific information will be released when the contract is secured.

"We are growing rapidly," said Kenneth Lamb. "Establishing international operations, executing marketing programs including the creation of a leading edge website are just a few of the objectives we have outlined in our growth strategy. These accomplishments will enable us to increase productivity, streamline operations and communicate more effectively with shareholders."

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. It has acquired La Esperanza Mine and Manantiales Mine in Colombia's highest yielding municipality and is in the later stages of negotiations with several high-grade gold and silver properties. MGM Mineral Resources is initially targeting the richest gold zone in Colombia, where between 60 and 80 percent of the nation's gold is produced. For more information, please visit www.mgmmining.com

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
    416-214-7847
    President