Takara Resources Inc.
TSX VENTURE : TKK

Takara Resources Inc.

March 13, 2009 08:00 ET

Takara Resources Enters Into Strategic Alliance With Garson Gold

TORONTO, ONTARIO--(Marketwire - March 13, 2009) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Takara Resources Inc. (TSX VENTURE:TKK) ("Takara" or the "Company") and Garson Gold Corp. (TSX VENTURE:GG) are pleased to announce that they have entered into a series of business transactions designed to facilitate the business objectives of each of the Companies.

The transactions contemplated by Takara and Garson Gold include a blending of certain members of management, and the acquisition by Garson of Takara's Canadian gold projects.

Garson Gold holds at 100% interest in the New Britannia Gold Mine (NBM) in Snow Lake, Manitoba, where approximately 1.43 million ounces of gold was produced historically (1949 to 1958 and again from 1995 to 2004). The resource estimate at the NBM property, audited by Micon International Ltd. in accordance with CIM classifications pursuant to National Instrument 43-101, is available for viewing on Garson Gold's Sedar Profile (www.sedar.com) and www.garsongold.ca. It states the total property resource inventory at 449,000 oz Au (2,605,000 tonnes grading 5.37 g/t) in the measured and indicated categories and 317,000 oz Au (1,886,000 tonnes grading 5.22 g/t) in the inferred category. Infrastructure at the New Britannia Gold Mine includes a fully-permitted 2,150 tonne per day modern mill and tailings facility, an associated plant, and equipment. Garson is nearing completion of its Preliminary Economic Assessment to evaluate rehabilitation of the mill and the ramp for the No 3 Zone, and an updated resource estimate is currently underway and is expected to include the Boundary Zone, a satellite deposit located one kilometre from the Main mine and mill.

In respect of these transactions, Garson shall issue to Takara 10,000,000 treasury shares subject to the receipt of all necessary regulatory consents. It is Takara's intention to re-distribute the Garson Shares to Takara shareholders shortly following the expiration of applicable hold periods. In the event that Garson Gold holds a meeting of shareholders prior to the time that the Garson Shares are re-distributed to Takara shareholders, Takara shall vote the Garson Shares in a manner supportive of and consistent with the voting preferences of Garson management. Also in the context of these transactions, Takara shall issue to Garson Gold 3,000,000 treasury shares, subject to the receipt of all necessary regulatory consents, and Garson Gold shall be excluded as a recipient of the Garson Shares if and when distributed to the Takara shareholders.

Garson Gold shall acquire Takara's interests in its Canadian gold projects including (Big Bar, Baez, Ospika Projects and five additional prospective geochemical target properties) located in the central interior of British Columbia which have potential to host either epithermal gold-silver mineralization and/or sedimentary exhalative Pb-Ag-Zn mineralization (see Takara Press Releases dated August 19, 2008), and the Luciana Gold Prospect, located north of Val d'Or, Quebec. Ground geophysical surveys (magnetic and induced polarization) and a prospecting program were completed at Luciana in 2007 and 2008, and as a result of this work, a diamond drill program was carried out by Takara in December, 2008, having a focus on selected IP targets spatially associated with late cross-cutting fault systems (see Takara website at www.takararesources.com news releases dated December 8, 2008 and December 23, 2008). In excess of $640,000 in expenditures has been spent to date on the properties Garson is acquiring.

The management of Takara and of Garson Gold shall jointly appoint an Advisory Committee focused on the re-activation of Garson's New Britannia Mine and a Business Development Committee focused designed to identify new project opportunities conducive to each company's core business.

Ms. Julie Lassonde will step down as President of Takara Resources, and will join the Garson Gold management team, assuming the role of President. Ms. Lassonde, will, however, retain her seat on the board of directors of Takara, and will assume the role of Executive Vice President of Takara upon her resignation as President. Jennifer Boyle will remain in her role as Chief Executive Officer of Takara, and will assume the role of interim President until the vacancy of President can be filled. Additionally, Garson Gold shall have the option to appoint a nominee to the board of directors of Takara over the ensuing 12 month period.

Takara is in the process of evaluating its projects, and will be taking the necessary steps to further downsize its operations in order to preserve key projects that will enable the Company to survive the economic downturn and to be well positioned upon recovery of the markets.

All transactions contemplated herein are subject to securities regulatory approvals. The securities of Takara Resources Inc. have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any U.S. State, and may not be offered or sold in the United States or to any "US Person" (as defined in Regulation S under the Securities Act of 1933) absent registration or an exemption from registration.

Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. All of the forward-looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by Takara, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Takara or its business operations. Takara disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Takara Resources Inc.
    Julie Lassonde, B.Sc.
    President
    (647) 430-0966 or Mobile: (647) 302-7851
    or
    Takara Resources Inc.
    Jennifer L. Boyle, B.A., LL.B.
    Chief Executive Officer
    (647) 430-0966
    or
    Takara Resources Inc.
    Pamela Strand, P. Geol.
    Chair, Board of Directors
    (780) 435-0045
    Website: www.takararesources.com