G4G Resources Enters Joint-Venture Agreement on Iron-Oxide Copper-Gold Properties in Sweden
Vancouver, B.C., March 31, 2008 -- G4G Resources Ltd (TSX-V: GXG) (“G4G”) and Teck Cominco Limited’s wholly owned subsidiary TCL Sweden Ltd. (“TCL Sweden”) today announced the formation of a joint-venture agreement on eight properties in the highly prospective Norrbotten District of Sweden. The properties are located approximately 35 km east and southeast of the world-class Kiruna iron ore deposit.
The Norrbotten District is a world-class iron ore mining district and known throughout the world for its potential to host iron-oxide copper-gold systems. Mining in the district began during the 17th century. Kiruna and Malmberget are operating iron ore mines within the district, which have historically produced over 1.4 billion tonnes with grades of over 60% iron. (Mining Journal special publication February 2005.)
“The Swedish Government is open to investors in mining and exploration, following the introduction of the present Minerals Act (1992), which has facilitated exploration and licensing with the ultimate objective of opening more mines,” stated Peter Arendt, President and Chief Executive Officer of G4G Resources Ltd. “The Board and management of G4G consider Sweden to be one of the most progressive mining countries in the world and a good place to be doing business. The joint venture with TCL Sweden fits in perfectly with the iron ore development initiatives that G4G has undertaken.”
The agreement between G4G and TCL Sweden, which remains subject to regulatory approval, provides G4G the ability to earn a 100% interest in the specified properties by incurring US$5,000,000 in work expenditures on the properties within the next four years, with US$750,000 to be incurred on or before March 31, 2009. In addition, G4G would be required to issue TCL Sweden a total of 1,500,000 shares and 750,000 warrants, with 1,000,000 shares and 500,000 warrants to be issued upon receipt of regulatory approval for the Agreement. To maintain the option to earn the 100% interest in the properties, G4G would be required to issue the remaining shares and warrants on or before March 31, 2009. The warrants issued to TCL Sweden would be valid for two years from the date of issue and would have an exercise price of $0.50 in the case of the initial issuance of 500,000 warrants and an exercise price equal to the greater of (i) $0.50; or (ii) 135% of the average closing price of G4G’s common shares for the 10-day period prior to the date of issuance for the remaining 250,000 warrants. All shares and warrants issued to TCL Sweden would be subject to a 4-month regulatory hold period from the date of issue. TCL Sweden also retains the right to earn back up to 60% in one or more of the mineral properties.
In addition, G4G has granted options to purchase 1,250,000 common shares of G4G at an exercise price of $0.335 and valid for a period of five years to directors, officers and consultants of G4G, subject to regulatory approval.
About G4G Resources
G4G Resources Ltd. is a Canadian-based mineral exploration and development company focused on base metal projects. The Company recently (see press release dated March 3, 2008) announced the execution of a Memorandum of Understanding (MOU) with IMBS to establish a joint venture to utilize Finesmelt(TM) technology, a process which converts superfine iron ore into high quality iron units. In addition, G4G is actively evaluating a number of strategic growth opportunities to create and enhance shareholder value.
Forward-Looking Statement
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company’s 2006 Annual Report filed with SEDAR on April 30, 2007.
For more information contact:
Peter Arendt, President and CEO
G4G Resources Ltd.
Tel: 604-648-4202
Email:
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