|January 21, 2010|
Gleichen To Exercise Right Of First Refusal To Own 100% Interest In Morelos Gold Project
|Toronto, January 21, 2010 -- Gleichen Resources Ltd. (GRL -- TSX-V) ("Gleichen" or the "Company") ") is pleased to announce that it has decided to exercise its right of first refusal to acquire from Desarrollos Mineros San Luis, S.A. de C.V., a wholly-owned subsidiary of Goldcorp Inc. ("DMSL"), all of the shares in the capital of Minera Media Luna, S.A. de C.V. ("MML") held by DMSL, representing 21.2% of the issued and outstanding shares of MML. Gleichen, through its direct and indirect subsidiaries, currently holds the other 78.8% of the issued and outstanding shares of MML. MML holds a 100% interest in the Morelos gold project in Mexico (the "Project").|
"This is a marvelous opportunity to consolidate this asset under one single ownership structure," said Fred Stanford, President and CEO of Gleichen, "we are certainly looking forward to starting our exploration work and be in a position to consistently deliver updates on our progress", he added.
On December 2, 2009 Goldcorp and Newstrike Capital Inc. ("Newstrike") announced that they had entered into an agreement for the sale of DMSL's 21.2% in the Morelos project to Newstrike for CDN$44.5 million and 15 million common shares of Newstrike, subject to Gleichen's right of first refusal. As required under its right of first refusal, Gleichen intends to purchase DMSL's interest in the Project for not less than the consideration payable by Newstrike under its agreement with Goldcorp.
Completion of the transaction will be subject to the execution of a definitive agreement with Goldcorp, which will contain customary terms and conditions for a transaction of this nature, including stock exchange approvals.
Gleichen Resources Ltd., is a well funded, growth oriented Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 78.8% of the Morelos Project, an advanced stage gold exploration property, located 180km southwest of Mexico City. The Company trades on the TSX Venture Exchange under the symbol GRL. The Company's Board of Directors has approved a change of the Company's name to Torex Gold Resources Inc., pending approval at its next annual and special meeting of shareholders.
For further information, please contact:
GLEICHEN RESOURCES LTD.
President and CEO
Tel. (647) 260-1502
Gabriela M. Sanchez
Vice President Investor Relations
Tel. (647) 260-1503
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is based on the reasonable assumptions and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.