MGold Resources Inc.

September 30, 2011 10:01 ET

MGold Concludes an Amendment Agreement and Acquires an Additional 14.9% Interest in the Burchell Lake Property

MONTREAL, QUÉBEC--(Marketwire - Sept. 30, 2011) - MGold Resources Inc. ("MGold" or the "Corporation") (TSX VENTURE:MNI) is pleased to announce that it has entered into an amendment agreement (the "Amendment Agreement") with the grantors (the "Grantors") of MGold's current 85.1% interest in the Burchell Lake property(the "Burchell Lake Property"). MGold and the Grantors are arm's length parties. The Amendment Agreement provides for the issuance of 1,080,800 common shares of MGold's share capital (the "Common Shares"), at a deemed issue price of $0.10 per Common Share, in order to settle a debt arising from advance royalties owing to the Grantors in connection with the Burchell Lake Property. The Amendment Agreement further provides that MGold will acquire an additional 14.9% interest in the Burchell Lake Property upon the issuance of the Common Shares, hence bringing its interest in the Burchell Lake Property to 100%. The Amendment Agreement remains subject to the approval of the TSX Venture Exchange.

The Common Shares issued in connection with the Amendment Agreement will be subject to a hold period of four months and one day.

MGold is engaged in mineral exploration for precious and base metals. The Corporation currently holds a 85.1% interest in the Burchell Lake Property (100% upon issuance of the Common Shares) which is prospective for gold, copper, and molybdenum, in the Shebandowan area of Northwestern Ontario. The Corporation is also engaged in the mineral exploration of the Silver Queen and Klondyke properties located in the Esmeralda County, Nevada, both of which are prospective for silver.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • MGold Resources Inc.
    Joel Scodnick
    President and Chief Executive Officer
    (705) 522.4439
    (705) 522.8694 (FAX)

    MGold Resources Inc.
    Marc Poitras
    Chief Financial Officer and Director
    (705) 222-1700
    (705) 222-1701 (FAX)