Oct 22 2010
Ardent Mines Limited (OTC Bulletin Board: ADNT) has announced the signing of a Memorandum of Understanding with the owners of Rio Sao Pedro Mineracao, Ltd., a Brazilian entity that owns land suitable for potential gold mining located 8 miles from Paracatu, Brazil, and approximately 180 miles from the capital city of Brasilia.
"The property, known as the Fazenda Lavras, is near the highly successful operation of Kinross Gold in Paracatu, which has become the largest producing mine in Brazil," noted Leonardo Riera, Ardent's Chief Executive Officer.
Preliminary evaluations conducted by independent geologists indicate reserves of approximately 5,700,000 ounces of gold in the property, consisting of approximately 400 Acres. In addition, RSPM controls the mineral rights on more than 1,000 acres of adjacent properties. This estimation was made on the basis of analysis to a depth of just 40 meters. In comparative terms, the neighboring Kinross operation is continuing to produce at 80 meters. "The geologists reports indicate that the two properties have similar geological formations, so we are very excited about the potential of this acquisition, which we have named Vale du Ouro (Gold Valley)," said Mr. Riera.
Pursuant to the MOU, Ardent expects to acquire 100% of the shares of RSPM - to include the property and all its mineral rights - by means of a share exchange. In consideration for the acquisition of RSPM, Ardent will issue 14,957,650 shares of Ardent common stock. Such shares shall represent, as of the date of their issuance to the sellers of RSPM, fifty percent (50%) of the issued and outstanding equity shares of Ardent. The closing of the transaction is subject to customary closing conditions, including the completion of a thorough geology survey, completion of audited financial statements, acquisition of all necessary government approvals to commence gold mining on the property, completion of due diligence, and the execution of detailed final agreements. After the conclusion of the due diligence period and closing, Ardent expects to obtain financing to conduct further exploration and initiate installation of mining facilities. "RSPM is in the process of applying for all environmental permits and gold production licenses in Brazil; we are closely collaborating with the owners, and expect to conclude due diligence with a target closing of the acquisition in late November or early December of this year," explained Riera.
"We are also evaluating other gold properties for Ardent to acquire," noted Mr. Riera.
Mr. Riera received his MBA from Wharton, and has 25 years of Investment banking experience. He was formerly Executive Director and Country Head of Bankers Trust Company - Latin America and was a consultant for McKinsey. "Ardent," noted Mr. Riera, "is now in the process of assembling a strong team of geologists and mining experts, and attracting highly credentialed individuals to our Board of Directors."
Source: Ardent Mines Limited