Vedron Gold Inc.
TSX VENTURE : VG

Vedron Gold Inc.

August 25, 2005 16:43 ET

Vedron Gold Inc. Mill Announcement

TORONTO, ONTARIO--(CCNMatthews - Aug. 25, 2005) - Vedron Gold Inc. (VG:TSX V) today announces that the Company has signed a Letter of Intent, with an arms length vendor, dated August 25, 2005 to purchase gold milling equipment, with an estimated grinding capacity of up to 1,000 tons per day. The milling equipment is located near Timmins, Ontario and near the Company's gold properties. The purchase price is $50,000 cash, a one year note, secured by a first charge on the assets purchased, in the amount of $200,000 bearing 8% interest plus 800,000 shares to be issued by the Company, subject to Vedron obtaining regulatory and board approval. In addition to the purchase price, a throughput charge will be payable on material processed at the rate of $1.50 per ton when the gold price is below USD $550. The throughput charge will increase to $2.00 per ton when the gold price is above $550 but below $700. When the gold price is above $700 per ounce the throughput charge will be $3.50 per ton. The equipment subject to the purchase agreement is a complete milling equipment package with the exception that a secondary crusher will have to be purchased and the Merrill Crowe gold separation system will be replaced with a CIP unit (carbon in pulp) at Vedron's cost.

SHARES: 49,308,947

The TSX Venture Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Vedron Gold Inc.
    Thomas Meredith
    President
    (416) 368-0099
    (416) 368-1539 (FAX)