Pelangio Exploration Acquires Option to Repurchase Royalty on the Poirier Gold Property in West Timmins, Ontario
TORONTO, ONTARIO--(Marketwire - Nov. 23, 2009) - Pelangio Exploration Inc. (TSX VENTURE:PX) ("Pelangio" or the "Company") is pleased to announce that it has acquired an option to repurchase a 0.5% net smelter royalty (the "NSR") on the Company's 100%-owned Poirier Gold property (the "Property") in West Timmins, Ontario. The Company paid the optionor $10,000 for a one year option to repurchase the NSR upon payment of a further $40,000. The Property is located adjacent to and contiguous with Lake Shore Gold Corp.'s Timmins Mine Project and Thunder Creek properties (the following link illustrates the Property's location in the West Timmins camp: http://media3.marketwire.com/docs/PX1123_Map.jpg)
"Thunder Creek is one of the most prospective properties in Canada right now and our Poirier Gold property is the closest thing to it," stated Ingrid Hibbard, President and Chief Executive Officer of Pelangio. "This option reflects our commitment to maximizing shareholder value in creative ways, though our exploration focus remains on the Obuasi property in Ghana, where our ongoing program contemplates over 30,000 metres of drilling by the end of 2010."
Exercise of Warrants
Pelangio is also pleased to announce that it has received $2,170,000 from the exercise of all of its outstanding $0.20 common share purchase warrants (the "Warrants"), which were issued in the Company's February 2009 private placement financing. The Warrants were initially scheduled to expiry on February 27, 2011, but the expiration date was accelerated to November 22, 2009 upon the occurrence of certain events. Following the exercises, the Company's net working capital stands at $8 million and the Company continues to hold 100,000 shares of Detour Gold Corporation.
About Pelangio
Pelangio is a fully financed gold exploration company active in two of the top-ranked mining jurisdictions in the world, Canada and Ghana. The Company's primary goal is to discover Obuasi Mine-style gold ore shoots on its 290 km2 property located on strike and adjacent to AngloGold Ashanti's Obuasi Mine, which has produced 30 M oz of gold since 1897 and holds current reserves and resources of 37 M oz (9.7 M oz reserve in a global resource comprising: 24.5 M oz measured and indicated; 12.5 M oz inferred - as further described in AngloGold Ashanti's Mineral Resource and Ore Reserve Report 2008).
For additional information, please visit our website at www.pelangio.com.
