GoldSands Development Company (OTCBB:GSDC)(OTCQB:GSDC) is pleased
to announce that Colombia's largest gold producer, Mineros S.A. has
formally exercised Option 1 of our Mineral Right Option and Joint
Venture Agreement and made the initial payment of US$196,000 to
GoldSands pursuant to the amended agreement.
Under the Agreement, Mineros was granted the right to conduct
due diligence investigations through April 30, 2012. Their due
diligence has now been successfully completed and payment has been
received by GoldSands. The first option under the agreement is now
in force. During the due diligence period, Mineros took samples of
gold-bearing materials throughout the property for evaluation. They
noted GoldSands' professional handling of local social and
environmental concerns and determined that 49 of the 50 concessions
are in good standing. Moving forward payments will be based on
these 49 concessions.
In addition to fulfilling the requirements under Option 1,
Mineros is required to expend a minimum of US$ 3,500,000 (US
Dollars Three Million Five Hundred Thousand) on exploration and
development of the property underlying the Mining Rights in order
to exercise Option 2. In the event that Mineros exercises both
options the parties would then form an 85/15 (Mineros/GoldSands)
Joint Venture. Mineros would then be solely responsible for
developing a feasible mining project and all necessary facilities
for the extraction, crushing, processing and beneficiation of
commercially valuable minerals, including all necessary facilities
for compliance with applicable laws, including environmental laws
governing mining activity in Peru. All necessary capital costs and
investment required for the development of a feasible project are
to be supported exclusively by Mineros.
The Mineros due diligence resulted in two amendments to the
original agreement. The term of the "24 Month Standstill Agreement"
has been increased by 2 months and the second payment of $196,00,
will be deferred for an additional 2 months as more time is
required to receive further permits and approvals. Moving forward,
an eight person team from Mineros S.A. in conjunction with
GoldSands personnel and local workers are preparing the concessions
for further exploration and geophysics.
GoldSands CEO Michael Stocker remarked:
"We are extremely pleased that following the successful
completion of their due diligence the biggest Gold Miner of
Colombia, Mineros S.A., has agreed to formally exercise its right
to advance to Option 1 of our agreement. The amount of planning,
strategic discussion and field work undertaken by Mineros during
this time demonstrates their high level of professionalism and the
huge potential of our project."
Chairman of the Board Patrick Gorman commented:
"Many months of intensive work and negotiations took place
before the formal agreement between our companies was concluded. It
is gratifying to see that as Mineros moves towards executing the
plan to further explore our concessions, its team will be involving
workers from the local communities."
About Mineros S.A.
Mineros SA, 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 been actively
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.
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. The full implementation of these programs will require
the Company to secure additional financing.
The Company can provide no assurance that the Agreement with
Mineros S.A. will result in us entering into a joint venture
agreement for the purpose of carrying out further development work
and production on the Mineral Rights. In addition, this Agreement
should not be construed as any indication that the Company's Peru
GoldSands project contains alluvial gold in economical quantities
that would support commercial production.
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 Direct Dial:
360-339-7309info@goldsandsco.com
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