St. Jude Resources Ltd.

St. Jude Resources Ltd.

August 23, 2005 19:31 ET

St. Jude Acquires Crew Gold Interest in Hwini Butre for $5 million USD

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2005) - St. Jude Resources Ltd. (TSX VENTURE:SJD) is pleased to announce that it has served notice to Crew Gold Corporation, indicating its desire to increase its interest in Hwini Butre to 65%, pursuant to the call option stipulated in the original agreement between the parties dated February 1995. As a result of a new agreement, Crew has offered and St. Jude has agreed to acquire Crew's remaining 25% interest in the concession effective immediately. The total consideration to be paid for these transactions is USD $5 Million which shall be paid in equivalent number of St. Jude shares. As a result St. Jude will issue 2,995,000 common shares to Crew. These shares will be subject to a four month statutory hold period, after which time one third of these shares will be subject to a hold period spanning an additional 12 months.

As a consequence of the above transaction St. Jude will now hold an 80% interest in the Hwini Butre project. The original Ghanaian vendor holds a 10% interest and the Government of Ghana holds their standard 10% carried interest. St. Jude is in the process of completing a feasibility study on both the Hwini Butre and adjoining Benso concession where the company now controls a N.I. 43-101 compliant, measured and indicated resource of 1,316,000 ounces.



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Contact Information

  • St. Jude Resources Ltd.
    Todd McMurray
    Vice President, Corporate Development
    (604) 940-6565 or Toll Free: 1-866-281-2193
    (604) 940-6566 (FAX)