Takara Resources Inc.
TSX VENTURE : TKK

Takara Resources Inc.

May 19, 2011 13:25 ET

Takara Exercises Right to Purchase Guyana Goldfield's 70.1% Interest in the BRL/Arakaka Project in Guyana

TORONTO, ONTARIO--(Marketwire - May 19, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Takara Resources Inc. (TSX VENTURE:TKK) ("Takara") announces that it has elected to increase its interest from 29.9% to 100% in the Arakaka Joint Venture Project by exercising its right of first refusal in respect of the acquisition of Guyana Goldfield's 70.1% interest in this large, advanced-stage gold project located in Northwest Guyana in the Arakaka Gold District. The terms of sale among Guyana Goldfields Inc. and Guyana Precious Metals Inc. are set out in a news release disseminated by Guyana Precious Metals Inc., on April 26, 2011, namely, a cash payment of US$3,734,000 and the reservation of a 1% net smelter royalty return having a full buy-back for US$1M. Guyana Goldfields Inc. provided Takara with notice of Takara's right of first refusal to purchase its interest, and the closing and final terms are expected to be completed within 30 days.

Jennifer Boyle, President and Chief Executive Officer of Takara states: "By augmenting our status from minority partner to that of controlling ownership in this large, advanced-stage project that has had upwards of USD $17 million invested, it elevates Takara's position among its peers in Guyana and enables the Company to dovetail resources and activities at the Arakaka project with the development of our 100% held Tassawini Deposit located 35 kilometers east of the Arakaka Project".

Takara, through its Guyanese subsidiary, StrataGold Guyana Inc., currently holds a 29.9% interest in the Arakaka Joint Venture (formerly named BRL Venture), and upon completion of the acquisition, Takara will be the holder of a 100% interest in the Arakaka project, subject to various entitlements held by underlying property vendors.

The Arakaka project area was formed as a 50/50 joint venture in 2005 by StrataGold Guyana Inc. (the then subsidiary of StrataGold Corporation, a publicly traded company) and Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation (NYSE:NEM). In 2009 Victoria Gold Inc. (TSX VENTURE:VIT) purchased StrataGold Corporation and subsequently vended its subsidiary, StrataGold Guyana Inc., to Takara in 2010. Newmont carried the majority of joint venture funding on the Arakaka ("BRL") project during the last two years, resulting in a diluted 29.9% interest to StrataGold Guyana Inc. In October 2010 Guyana Goldfields Inc. indirectly purchased Newmont's interest in the Arakaka Joint Venture Project.

The Arakaka Project hosts over 25 individual gold exploration targets and has identified two meaningful mineralized zones to date. Exploration programs have included regional and detailed stream sediment and soil geochemistry surveys, induced polarization ground geophysical surveys, and detailed structural mapping. Total drilling on the project to date is 7,400 meters (46 holes) and 7,395 meters of trenching (50 trenches).

Dr. Tania Ilieva, P. Geo., is the Vice President Exploration for Takara Resources and is the Qualified Person responsible for the technical content of Takara's disclosures.

About Takara

Takara Resources Inc. is a Canadian based (TSX VENTURE:TKK) gold company focused on exploring and developing its Guyana gold assets in the Guiana Shield that are held within a wholly-owned subsidiary, StrataGold Guyana Inc., namely: (i) the Tassawini Gold Project; and (ii) the Arakaka (formerly named BRL) Venture. The Tassawini Gold Project hosts a National Instrument ("NI") 43-101 compliant mineral resource estimate. Tassawini deposit contains 437,000 ounces gold (Indicated resource 10,799,600 tonnes having an average grade of 1.3 g/t) and Inferred resource of 62,000 ounces gold (614,000 tonnes having an average grade of 1.7 g/t and 1,312,000 tonnes having an average grade 0.7 g/t).

Statement Regarding Forward Looking Statements

This news release of Takara contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Takara's actual results, performance or achievements, or developments in the industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding Takara's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which Takara has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Important factors that could cause actual results to differ materially from Takara's expectations include, but are not limited to risks related to working in foreign countries, risks that are coincident with cultural diversities, fluctuations in mineral prices, uncertainties related to raising sufficient financing to fund planned work in a timely manner and on acceptable terms, changes in planned work resulting from legal matters, weather, logistical, technical or other factors, the possibility that results of work will not fulfill expectations and realize the perceived potential of Takara's properties, uncertainties involved in the estimation of resources, the possibility that required permits may not be obtained in a timely manner or at all, and the possibility of cost overruns or unanticipated expenses in the work programs. Takara undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the 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 news release.

Contact Information

  • Takara Resources Inc.
    Jennifer L. Boyle, B.A., LL.B.
    Chief Executive Officer
    (647) 430-0966 (work) or (416) 904-2714 (cell)