Stock Exchange Filings
RNS Number:7605F
Galahad Gold Plc
29 November 2004
GALAHAD GOLD PLC ("Galahad")
Northern Dynasty Minerals Limited - Option Exercise
Galahad Gold PLC (AIM:GLA) announces that Northern Dynasty Minerals xLimited (TSX
Venture: NDM; AMEX: NAK), in which Galahad holds a 35.81% interest (prior to the
dilution contained in this announcement), has exercised its principal option
rights in respect of the Pebble Gold-Copper-Molybdenum Project, located in
sxouthwestern Alaska, USA. By exercising the options, Northern Dynasty has
acquired an initial 80% interest in the Resource Lands at the Pebble Deposit by
issuing 1.77 million Northern Dynasty common shares to Teck Cominco American
Inc. ("Teck Cominxco").
The Pebble Deposit is the focus of a comprehensive program of drilling,
engineering and environmental work designed to complete a feasibility study and
an environmental impact statement in 2005 for a large-scale open pit mining
operation.x
Northern Dynasty has also exercised its option to acquire 50% of Teck Cominco's
interests in the Exploration Lands at the Pebble Deposit.
Enquiries to:
GALAHAD GOLD PLC
Ian Watson/Alastair King Tel: 020 7408 2002
PARKGREEN COMMUNICATIONS
Sixmon Robinson/Justine Howarth Tel: 020 7493 3713
SEYMOUR PIERCE
Mark Percy/Jeremy Porter Tel: 020 7107 8000
Notes to Editors:
Galahad Gold plc is an international mining development company quoted on the
AIM Market of the London Stock Exchange uxnder the symbol GLA. It has three
current projects, all in politically safe locations:
+ *35.81% (prior to the dilution contained in this announcement) of
Northern Dynasty Minerals Limited the owner of the Pebble project in
Axlaska which contains the largest gold deposit in North America and the
second largest copper deposit;
+ *100% of Skaergaard in Greenland, one of the largest palladium
deposits outside South Africa and Russia; and
+ *100% xof Malmbjerg in Greenland, one of the largest primary molybdenum
deposits in the world.
Galahad's attributable Inferred Mineral Resources:-
+ *20.12m ounces of gold;
+ *3m ounces of platinum;
+ *35.1m ounces of palladixum;
+ *8.74bn lbs of copper; and
+ *313.2m lbs of molybdenum
These figures exclude Malmbjerg's molybdenum and the extensive vanadium and
titanium deposits in Skaergaard.
Further information on Galahad may be found at www.galahadgoldx.com
The announcement below was released by Northern Dynasty Minerals Limited ("NDM").
Galahad Gold PLC has not sought to verify any of the contents of the press
release below.
Re: News Releases - Friday, November 26, 2004
Title: xNorthern Dynasty Exercises Purchase Options On Pebble Project
November 26, 2004, Vancouver, BC - Ronald W. Thiessen, President and CEO of
Northern Dynasty Minerals Ltd. (TSX Venture: NDM; AMEX: NAK) is pleased to
announce that Northern Dynasty haxs exercised its principal option rights in
respect of the Pebble Gold-Copper-Molybdenum Project, located in southwestern
Alaska, USA. The Pebble Project consists of the Resource Lands which host the
2.74 billion tonne gold-copper-molybdenum inferrxed resource of which Northern
Dynasty can acquire up to 100%, and the surrounding Exploration Lands that host
several porphyry gold-copper-molybdenum prospects and gold occurrences of which
Northern Dynasty can acquire at least 50%, as described bxelow. The Pebble
Deposit is the focus of a comprehensive program of drilling, engineering and
environmental work designed to complete a feasibility study and an environmental
impact statement in 2005 for a large-scale open pit mining operation.
xBy exercising the options, Northern Dynasty has acquired an initial 80% interest
in the Resource Lands by issuing 1.77 million Northern Dynasty common shares to
Teck Cominco American Inc. ("Teck Cominco"). These shares represent the adjusted
final xpayment of US$9.94 million which was required to be made by November
30th, 2004 under Northern Dynasty's 2001 option agreement with Teck Cominco.
Under the option agreement, Teck Cominco has the right, exercisable within 180
days, to require Northxern Dynasty to manage the liquidation of these shares over
a period of up to two years, with any surplus proceeds over US$9.94 million
credited back to Northern Dynasty and any shortfall from that figure is required
to be made up in cash or sharesx by Northern Dynasty.
Northern Dynasty has also exercised its option to acquire 50% of Teck Cominco's
interests in the Exploration Lands. Teck Cominco has 90 days to elect to form a
50-50 joint venture on the Exploration Lands or sell its 50% intexrest in the
Exploration Lands to Northern Dynasty for US$4 million, in cash or shares at
Northern Dynasty's election, and it will then retain a 5% after-pay-back net
profits interest in any mine located on the Exploration Lands. Any shares issued
x
will be subject to the same liquidation management provisions as the 1.77
million shares. Northern Dynasty has completed more than 60,000 feet of drilling
on the Exploration Lands as required under the agreement to exercise the option.
As a consexquence of exercising the Teck Cominco options, Northern Dynasty also
has a 90 day period to elect whether to also acquire the 20% carried interest in
the Pebble Project held by a related party for share consideration equal to the
independently apprxaised value of the 20% interest. Northern Dynasty has formed a
special committee of four disinterested directors to make the acquisition
determination, to either acquire the 20% or form an 80:20 joint venture with the
related party. Depending on thex election of Teck Cominco, the joint venture may
also include Teck Cominco in the Exploration Lands portion of the Pebble
Project. In summary, Northern Dynasty will hold either 80% or 100% of the
Resource Lands in its sole discretion and will own nxot less than 40% and up to
100% of the Exploration Lands dependent on the decisions of its special
committee and Teck Cominco.
For further details on Northern Dynasty and the Pebble project please visit the
Company's website at www.northerndynaxsty.com or contact Investor Services at
(604) 684-6365 or within North America at 1-800-667-2114. Review Northern
Dynasty's Canadian public filings at www.sedar.com and US public filings at
www.sec.gov.
ON BEHALF OF THE BOARD OF DIRECTORS
xRonald W. Thiessen
President and CEO
No exchange or regulatory authority has approved or disapproved the information
contained in this news release.
This release refers to an inferred mineral resource estimate which is not to be
interpreted axs a mineral reserve of any kind under either Canadian or US
disclosure rules. Any determination that the Pebble Project mineralization
constitutes a reserve will require extensive additional exploration and
metallurgical work as well as mine permixtting and construction. There is no
assurance that the resource will ever be classified as a reserve or that
commercial mining will ever take place on it. The additionally required
exploration and development work will need large additional fundinxg which may
not be available to the Northern Dynasty on acceptable terms or upon any terms
at all. For more information on the Company and the risk factors inherent in its
business, investors should review the Company's annual Form on 20F filing wxith
the United States Securities Commission and its home jurisdiction filings that
are available at www.sedar.com.
This information is provided by RNS
The company news service from the London Stock Exchange
x
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