Pelangio Exploration Inc.
TSX VENTURE : PX

Pelangio Exploration Inc.

June 16, 2011 09:09 ET

Pelangio Exploration Acquires 100% of the Obuasi Property

Also Acquires Option on 160 km2 Akroma Property

TORONTO, ONTARIO--(Marketwire - June 16, 2011) - Pelangio Exploration Inc. (TSX VENTURE:PX) ("Pelangio" or the "Company") is pleased to announce that it has acquired a 100% interest in the 290 km2 Obuasi Property in Ghana (subject to the Government of Ghana's legislated 10% carried interest upon commencement of mining operations). The Company recently completed the final payment totaling US$750,000 under the option agreements in respect of the Obuasi Property.

"Our 100%-owned, 290 km2 Obuasi Property is immediately adjacent to and on strike with the largest vein-hosted deposit in the world, AngloGold Ashanti's Obuasi Mine," stated Ingrid Hibbard, President and Chief Executive Officer. "The acquisition of the Obuasi Property epitomizes Pelangio's philosophy of acquiring camp-size land packages on world class gold belts, which provides many opportunities to make major discoveries."

Ms. Hibbard continued, "Since arriving at Obuasi, we have developed excellent relationships with the property vendors and local communities, and we expect to continue these relationships into the future. We also plan to build upon our exploration successes to date as we move towards discovery on the property. With four growing discoveries already and immediate discovery potential at our Manfo Property, the prospect of new discoveries at Obuasi represents tremendous additional opportunity for our shareholders."

Pelangio Acquires Option on 160 km2Akroma Property

Pelangio is also pleased to announce that it has entered into an agreement to acquire a 100% interest in the Akroma Property, a reconnaissance license covering 160 km2 in the Brong Ahafo Region of Ghana. The Akroma Property is an early stage exploration property with initial prospecting, geochemical and geophysical surveys indicating significant exploration promise.

"The Akroma Property is a promising grassroots property that adds to our exploration pipeline," stated Warren Bates, Vice President Exploration. "Though large ground packages are rarely available in Ghana, we have now managed to acquire 550 square kilometres of highly prospective ground."

Pursuant to the option agreement on the Akroma Property, in order to acquire a 100% interest in the property, Pelangio must pay US$50,000 and issue 200,000 common shares ("PX Shares") to the optionor over a three-year period, pursuant to the following schedule:

  1. US$50,000 and issue 35,000 PX Shares, completed on June 15, 2011;
  1. on or before June 15, 2012, issue 40,000 PX Shares;
  1. on or before June 15, 2013, issue 55,000 PX Shares;
  1. on or before June 15, 2014, issue 70,000 PX Shares.

Pelangio must also grant the optionor a 2% net smelter return royalty ("NSR") upon making the payment and share issuances described above, of which 1% may be repurchased at any time for a cash payment of US$2 million.

About Pelangio

Pelangio is a junior gold exploration company that acquires and explores camp-sized land packages in world-class gold belts, while using innovative corporate restructuring to maximize shareholder value. Drilling is currently underway on two properties with company-making potential in Ghana, West Africa: the 100 square kilometre Manfo Property on the Sefwi greenstone belt between the Ahafo and Chirano mines, respectively operated by Newmont and Kinross, is the site of four recent near-surface gold discoveries; and the 290 square kilometre Obuasi Property on the Ashanti greenstone belt is located on strike and adjacent to AngloGold Ashanti's prolific, high-grade Obuasi Mine, which has produced over 30 million ounces of gold since 1897.

For additional information, please visit our website at www.pelangio.com.

Forward Looking Statements

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions. Forward-looking statements and information include statements regarding the Company's exploration plans and exploration results with respect to the Obuasi Property and the Manfo Property, and are subject to forward-looking risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Such risks include gold price volatility, changes in equity markets, political developments in Ghana, increases in costs, exchange rate fluctuations and other risks involved in the gold exploration industry. See the Company's annual and quarterly financial statements and management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward-looking statements or information except as required by law. All forward-looking statements and information herein are qualified by this cautionary statement.

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

  • Pelangio Exploration Inc.
    Ingrid Hibbard
    President & CEO
    905-875-3828 / Toll-free: 1-877-746-1632

    Pelangio Exploration Inc.
    Brendan Cahill
    VP Corporate Development
    905-875-3828 / Toll-free: 1-877-746-1632
    info@pelangio.com
    www.pelangio.com