GoldSands Development Company ("GoldSands") (OTCBB:GSDC)
(OTCQB:GSDC) is pleased to announce the signing of an agreement
with Tisdale Mining, LLC ("Tisdale") of the USA, whereby GoldSands
has agreed to grant to Tisdale the right to develop and conduct
gold mining operations on two selected concessions from the
GoldSands portfolio (the "Tisdale-Option Concessions"). The
Tisdale-Option Concessions together constitute approximately 2,000
hectares of property.
At the same time, GoldSands, Tisdale and Mineros S.A.
("Mineros") have entered into a separate Consent Agreement whereby
the three parties have agreed to share the economic benefits from
Tisdale's development and operation of the Tisdale-Option
Concessions.
GoldSands and Mineros previously entered into an agreement on
January 20, 2012, whereby GoldSands granted to Mineros an option
(the "Mineros Option") to acquire an 85% interest in 50 mineral
rights concessions beneficially owned by GoldSands (the
"Mineros-Option Concessions"). Under the Mineros Option, Mineros
may acquire an 85% interest in the Mineral-Option Concessions,
which will be transferred to a new special purpose entity (the
"SPE"). If Mineros exercises the Mineros Option, GoldSands will
hold a 15% interest in the SPE. The Mineros-Option Concessions
include the Tisdale-Option Concessions.
Under the Consent Agreement, GoldSands will receive an
additional 5% share of all gold production from the Tisdale-Option
Concessions, as well as an annual payment of $50,000. These
economic benefits will be in addition to GoldSands' 15% ownership
interest in the SPE.
Tisdale Mining, LLC is a privately owned company based in Los
Angeles, California, USA. Tisdale has a mandate to develop metals
mining projects in South America and West Africa. Tisdale's goal is
to create value for its stakeholders through responsible and
sustainable mining operations, with a focus on local development,
worker safety and respect for the environment.
Mineros S. A., a company publicly traded on the Colombia Stock
Exchange, is Colombia's largest gold producer, and one of the
world's largest producers of alluvial gold. Mineros' 2011 gold
production was primarily from alluvial mining projects, with an
annual alluvial gold yield of approximately 95,231 ounces, compared
to approximately 20,652 ounces from their underground mining
operations. For the last several years, Mineros has actively been
seeking additional prospective gold projects in South America.
Mineros' 2011 budget for operational expansion was US$48.411
million, of which US$25.814 million is solely for new exploration
activities. Under the current agreement, Mineros has the right to
conduct due diligence investigations through April 30, 2012.
Goldsands President and CEO, Dr. Michael Stocker, remarked:
"Social programs and environmental responsibility play a key role
for us and for Mineros, and we were pleased to learn that Tisdale
shares those same business principles. Accordingly, those
principles were incorporated as an integral component our new
agreements involving Tisdale. We would also highlight the fact that
a second mining company has expressed an interest, and indeed has
entered into formal legal agreements, to explore the potential of
GoldSands' concessions in Peru.
The Company can provide no assurance that Tisdale will exercise
its option on the relevant mining concessions or that the new
arrangements involving Tisdale will result in actual gold
production.
About GoldSands Development Company
The Company's goal is to fully develop its Peruvian GoldSands
project. The Company's GoldSands project in Peru consists of
options on 461 square kilometers (178 square miles) of mining
property, the largest such block in the district. For thousands of
years, the waters of the Santiago and the Maranon rivers have been
carving their way through the gold-rich mountain canyons of the
Andes, carrying off gold and depositing it, as the river comes out
into the plain, in the loose gravels and sands - GoldSands - in the
area the Company now controls.
Results from test holes drilled during GoldSands' exploratory
drill program indicated the presence of alluvial gold in economical
quantities. While the Company considers results from the drill
programs and recently completed test mining production to be
favorable, the Company cautions that these results do not indicate
the presence of a commercially viable mineral deposit over most of
the area and an extensive amount of further exploration and funding
is needed to determine the full feasibility of the project.
The Company completed a social baseline study involving a series
of meetings with local residents and other stakeholders in the
region. The Company intends to work in an equitable, transparent,
and socially responsible manner with local communities, suppliers
and employees. The Company is committed to acting as stewards of
the local and regional ecological systems, behaving in an
environmentally responsible way, leaving a minimal "footprint" as a
result of our operations. The Company is working towards building
trust and sustaining relationships that go well beyond mining
operations.
Further information about GoldSands Development Company may be
found at: www.goldsandsco.com.
On behalf of the Board:
Dr. Michael Stocker - CEO
GoldSands Development Company
Disclaimer
This release contains forward-looking statements that are based
on beliefs of GoldSands Development Company management and reflect
GoldSands Development Company's current expectations as
contemplated under section 27A of the Securities Act of 1933, as
amended, and section 21E of the Securities and Exchange Act of
1934, as amended. When we use in this release, the words
"estimate," "project," "believe," "anticipate," "intend," "expect,"
"plan," "predict," "may," "should," "will," "can," the negative of
these words, or such other variations thereon, or comparable
terminology, are all intended to identify forward looking
statements. Such statements reflect the current views of GoldSands
Development Company with respect to future events based on
currently available information and are subject to numerous
assumptions, risks and uncertainties, including but not limited to,
risks and uncertainties pertaining to development of mining
properties, changes in economic conditions and other risks,
uncertainties and factors, which may cause the actual results,
performance, or achievement expressed or implied by such forward
looking statements to differ materially from the forward looking
statements. The information contained in this press release is
historical in nature, has not been updated, and is current only to
the date shown in this press release. This information may no
longer be accurate and therefore you should not rely on the
information contained in this press release. To the extent
permitted by law, GoldSands Development Company and its employees,
agents and consultants exclude all liability for any loss or damage
arising from the use of, or reliance on, any such information,
whether or not caused by any negligent act or omission.
Contacts: GoldSands Development Company Investor Inquiries:
North America Toll Free: 800-215-0811
360-339-7309info@goldsandsco.com
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