Union Gold Inc.
TSX VENTURE : UN

January 30, 2006 15:01 ET

Union Gold Inc. Enters Into an Option Agreement with Geodex Minerals Ltd. for the Mount Pleasant Area Properties in New Brunswick

TORONTO, ONTARIO--(CCNMatthews - Jan. 30, 2006) - Union Gold Inc.(TSX VENTURE:UN), is pleased to announce that an option agreement has been signed with Geodex Minerals Ltd. ("GXM") covering three blocks of claims in the Mount Pleasant area of New Brunswick. The total number of claims is 88. This land position lies on the west and south sides of the former Mount Pleasant mine.

GXM can earn a 60% interest in the claims by paying the Optionor a total of 500,000 GXM shares over three years and committing to expenditures of $300,000 in that period. GXM can increase its ownership to 80% in the following two years by payment of a further 500,000 shares. UN will retain a 1.5% NSR, half subject to buyback, and will gain another 1% NSR in exchange for its 20% equity if it elects not to proceed to joint venture.

GXM will be the operator of the property throughout the term of this agreement and any subsequent Joint Venture Agreement.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS RELEASE.

Contact Information

  • Union Gold Inc.
    Jeffrey J. Becker
    President
    (416) 364-0042 or 1 (800) 442-0824
    (416) 365-2630 (FAX)
    or
    Union Gold Inc.
    Penny M. Roberts
    Secretary
    (416) 364-0042 or 1 (800) 442-0824
    (416) 365-2630 (FAX)
    email: thebeckergroup@bellnet.ca