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8-K - CURRENT REPORT - Santa Fe Gold CORP | form8k.htm |
EX-99.2 - NEWS RELEASE DATED JANUARY 5, 2012 - Santa Fe Gold CORP | exhibit99-2.htm |
EX-99.3 - ARRANGEMENT AGREEMENT - Santa Fe Gold CORP | exhibit99-3.htm |
1128 Pennsylvania NE, Suite 200, Albuquerque, New Mexico 87110 | Tel: 505-255-4852 | www.santafegoldcorp.com
SANTA FE GOLD SIGNS DEFINITIVE AGREEMENT TO
ACQUIRE COLUMBUS SILVER
ALBUQUERQUE, New Mexico December 15, 2011 Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce it has entered into definitive agreements governing the proposed plan of arrangement under which Santa Fe has conditionally agreed to acquire all of the common stock of Columbus Silver Corporation (TSXV: CSC) for CDN$0.20 per share in cash, in a transaction valued at approximately $10 million. The parties have agreed to use commercially reasonable efforts to complete the acquisition by March 31, 2012, and in any event by May 31, 2012. The acquisition, when completed, will add significantly to Santa Fes silver and gold resources potentially available for processing at its fully permitted and operating flotation mill near Lordsburg, New Mexico.
The acquisition remains subject to conditions, including (a) Santa Fe obtaining financing in a sufficient amount to consummate the transaction; (b) Columbus Silver obtaining shareholder approval for the acquisition; and (c) all necessary court and regulatory approvals. Santa Fe must notify Columbus Silver by December 31, 2011 that it has obtained a firm commitment for the required financing, or Columbus Silver will have the option to terminate the agreement.
Santa Fes President and CEO, Pierce Carson, said The Columbus Silver acquisition is strategically important to Santa Fes future. We are working to secure the required funding and are confident that financing will be available under acceptable terms.
Santa Fe also has advanced US$300,000 to Columbus Silver under a bridge financing agreement. As previously disclosed, Santa Fe has agreed to provide bridge financing to Columbus Silver on an as needed and ongoing basis until closing or other termination of the acquisition.
Additional Information:
The Memorandum of
Understanding will included as an Exhibit to Santa Fes Current Report on Form
8-K to be filed with the SEC, and available at www.sec.gov and at
www.sedar.com.
About Santa Fe Gold:
Sant a Fe Gold is a U.S.-based
mining and explorat ion ent erprise focused on acquir ing and developing gold,
silver, copper and industrial mineral properties. Santa Fe controls: (i) the
Summit mine and Lordsburg mill in sout hwest er n New Mexico, which began pr
ocess ing operations in 2010; (ii) a substantial land position near the
Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the
Ortiz gold property in north-central New Mexico; (iv) the Black Canyon mica
deposit and processing equipment near Phoenix, Arizona; and (v) a deposit of
micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a
portfolio of high-qualit y, diversified mineral assets wit h an emphasis on
precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking statements") within
the meaning of applicable US and Canadian securities legislation. All
statements, other than statements of historical fact, included herein are
forward-looking statements. Although the Company believes that such statements
are reasonable, it can give no assurance that such expectations will prove to be
correct. Forward-looking statements are typically identified by words such as:
believe, expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future events. The
Company cautions investors that any forward-looking statements by the Company
are not guarantees of future results or performance, and that actual results may
differ materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in the nature,
quality and quantity of any mineral deposits that may be located, variations in
the market price of any mineral products the Company may produce or plan to
produce, the Company's inability to obtain any necessary permits, consents or
authorizations required for its activities, the Company's inability to produce
minerals from its properties successfully or profitably, to continue its
projected growth, to raise the necessary capital or to be fully able to
implement its business strategies, and other risks and uncertainties disclosed
in the Companys Annual Report on Form 10-K for the year ended June 30, 2011 and
its most recent quarterly reports filed with the United States Securities and
Exchange Commission (the SEC), and other information released by the Company
and filed with the appropriate regulatory agencies. All of the Company's US
public disclosure filings may be accessed via www.sec.gov and its
Canadian public disclosure filings may be accessed via www.sedar.com, and
readers are urged to review these materials.
Contact:
Santa Fe Gold Corp
W. Pierce Carson,
President and Chief Executive Officer
505-255-4852