DGAP-News: Gulfside Minerals LTD.: ERDENETSOGT PROPERTY SALE
(firmenpresse) - Gulfside Minerals LTD. / Key word(s): Disposal
29.10.2010 09:58
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Vancouver, B.C. -October 28, 2010 - Robert L. Card, President of Gulfside
Minerals Ltd.
('Gulfside' or the 'Company'), is pleased to report that the Company has
signed a Share Purchase Agreement ('SPA') with Mangreat Ltd. ('Mangreat'),
the majority owner of ECM LLC ('ECM'), a Mongolian corporation which holds
the exploration license to the Erdenetsogt project, providing for the
sale of the Company's 5% interest in ECM.
The Company will receive up to $US 3,000,000 under certain conditions.
Mangreat has paid $US 500,000 into escrow with a balance of $US 1,500,000
due within one year. The Company will transfer its 5%
interest in ECM and terminate its current litigation in Mongolia upon
receipt of the first $US 2,000,000. If
the property is sold or joint ventured to a third party for a value greater
than $US 40,000,000 the
Company will receive an additional $US 1,000,000. Under the SPA the parties
have also agreed to abandon all litigation over the property and the
license. The transaction is subject to receipt of all
documentation and agreements being executed and delivered to the Escrow
Agent. History of the Project: Gulfside entered into a Memorandum of
Understanding (MOU) in June of 2007 and agreed to expend monies on the
Erdenetsogt project to develop the coal resource. The Company
eventually produced a National Instrument ('NI') 43-101 technical report.
The parties negotiated a sale price of the property to Gulfside but
differences arose which delayed the agreement in November 2007.
In March 2008 the parties signed an agreement to purchase the property but
before the agreement was approved by the TSX Venture Exchange, differences
again arose and the agreement was not ratified.
Later in 2008 the company took legal action under the terms of the original
MOU of June 2007 to protect its rights under the MOU.
In early 2009, the Company prevailed in the Supreme Court of Mongolia and
was awarded a 5% interest in ECM. Later in 2009, the Company commenced an
action in Mongolian courts to assert its rights of first refusal to
additional shares of ECM. This action is currently pending in the courts
and will be abandoned under the new SPA. The Company had also commenced an
arbitration action in the Courts of England which action will also be
terminated under this SPA Once the sale agreement is concluded, the Company
plans to concentrate its interest on the Onjuul project and seek funding to
continue with the Onjuul development program.
On Behalf of the Board of Directors,
Gulfside Minerals Ltd.
'Robert L. Card'
Robert L. Card
President
Investor Contact Del Thachuk
Delmor Enterprises Ltd.
604-538-5995
delthachuk(at)shaw.ca
www.gulfsideminerals.com
'Neither 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 release.'
Forward-Looking Statements: This document includes forward-looking
statements. Forward-looking statements include, but are not limited to,
statements concerning GMG's planned exploration program in Mongolia and
other statements that are not historical facts. When used in this
document, the words such as 'could,' 'plan,' 'estimate,' 'expect,'
'intend,' 'may,' 'potential,' 'should,' and similar expressions are
forwardlooking
statements. Although GMG believes that its expectations reflected in these
forward looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these
forward-looking statements are disclosed under the heading 'Risk Factors'
and elsewhere in the corporation's periodic filings with Canadian
securities regulators.
Investor Contact Del Thachuk
Delmor Enterprises Ltd.
604-538-5995
delthachuk(at)shaw.ca
www.gulfsideminerals.com
29.10.2010 09:58 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Datum: 29.10.2010 - 09:58 Uhr
Sprache: Deutsch
News-ID 32447
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