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Lago Dourado Minerals Signs Agreement with Geomin to Buy Flagship Gold Project

Lago Dourado Minerals has signed an agreement with Geomin to purchase the remaining 16 exploration licenses that were before under option, at its flagship gold project Juruena, Brazil.

Now, Lago Dourado has 100% interest in the whole project, which includes 25 exploration licenses, spanning  around 70,000 hectares. At present, Juruena has a drill rig and expects two rigs in the upcoming weeks.

The agreement with a Brazil-based local private consulting firm, Geomin incorporates Cdn$1 million cash payment, issuing 1.5 million ordinary shares and 1 million warrants with a three-year term at a price less than Cdn.$1.00.

This new agreement will reinstate current options with Geomin through which Lago Dourado can buy 70% interest in the Juruena Licences by giving payment of US$1.1 million in total by July 2013. The Company may possibly acquire 30% interest in Geomin at any period for US$8 million. Additionally, if Geomin dilutes 10% interest in joint venture business, then it will be forced to substitute that interest for a 2% net smelter returns royalty, wherein the company can acquire for US$3.0 million.

The companies have now achieved the mutual agreement to simplify the present ownership structure and offers Geomin an upside leverage on exploration success at Juruena.

Source: http://www.lagodourado.net/

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

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