| TORONTO, ONTARIO, (CCNMatthews via COMTEX)
Gold Summit Corporation (formerly Gold Summit Mines Ltd.) (the 'Corporation') is pleased to announce that all conditions of its acquisition of Millennium Mining Corporation ('Millennium') (the 'Acquisition') have been satisfied. Pursuant to a securities exchange agreement, dated as of July 18, 2003, entered into between the Corporation and Millennium, the Corporation acquired all of the issued and outstanding shares of Millennium in exchange for the issuance of 4,420,822 common shares, 2,210,411 common share purchase warrants (each such warrant entitling the holder thereof to purchase one common share of the Corporation until July 18, 2005, upon payment of $0.25) and 73,500 common share purchase warrants (each such warrant entitling the holder thereof to purchase one common share of the Corporation until July 18, 2005, upon payment of $0.75).
About Millennium
Millennium, now a wholly owned subsidiary of Gold Summit, is an advanced mineral exploration company focused on a stable of top quality, bonanza gold exploration projects in Nevada. Now universally recognized as premium, highly profitable deposits, these low sulphidation, epithermal, precious metal targets are becoming more attractive, even for the larger gold producers. Examples include Newmont's Midas mine in Nevada and Meridian Gold's El Penon deposit in Chile. Gold grades of 15-30 grams per tonne (g/t) with significant silver credits are not uncommon. Consequently, mining costs per ounce are low, and these mines are setting new standards for profitability.
The Tip Top Project
The Tip Top Project, located in Esmeralda County, Nevada, lies in the andesite belt that hosts the famed Comstock, Tonopah, and Goldfields gold mines and deposits. The project area encompasses an alteration system over two km long and 500 m wide, in the heart of which a massive gold bearing quartz vein forms prominent outcrops in andesite and rhyolite host rocks.
Between 1915 and 1918, the Tip Top Mine extracted some 6,500 ounces of gold from the main vein. In the last 20 years four companies carried out drill programs focusing on large tonnage, open pit, heap leach type deposits. The majority of the drill holes are rotary percussion, or reverse circulation that do not provide adequate geological or assay information for evaluating high grade vein systems. Two of the better intersections of massive quartz vein ran approximately 15 g/t gold over true widths of between 2.5 and 3.5 metres.
Vein textures, clearly exposed at surface and in shallow underground workings, show all the hallmarks of the top of a productive 'boiling'zone. (From similar deposits developed elsewhere, it has been demonstrated that these productive boiling zones can be some 300 to 500 metres in vertical extent and extend well over one km in strike length.) Previous drilling at Tip Top has been essentially confined to only 100 metres below surface. The classic, extensive epithermal gold system at Tip Top is ready for a major drill program specifically designed to test depth and strike extensions for high grade mineralization. The objective is to establish reserves for an underground operation.
In addition to an aggressive drill campaign at Tip Top, a drill program is being planned on a second project to commence this fall.
Other Projects
In addition to the Tip Top Project, Gold Summit has four other advanced projects which feature large, low sulfidation, precious metal vein systems hosted by Tertiary andesites: the Gold Reef Property in San Bernardino County, California; the Monte Cristo Project located in Esmeralda County, Nevada, approximately 40 km west-southwest of Newmont's Midway Project; as well as Blue Sphynx and Gold Springs, both located in Nevada. All of these projects have classic bonanza gold features.
Plan of Arrangement
Pursuant to Articles of Arrangement (the 'Arrangement') certified by the Director under the Business Corporations Act (Ontario) with an effective date of July 10, 2003, (the 'Arrangement Effective Date'), holders of common shares of Gold Summit Mines Ltd. ('Old Gold Summit') at 12:01 a.m. on July 10, 2003, will receive: (i) one (1) common share of the Corporation; (ii) one half (1/2) of a common share purchase warrant, each whole warrant entitling the holder thereof to purchase a common share of the Corporation at a price of $0.50 for a period of one year from the Arrangement Effective Date; and (iii) 2.16608 of a common share of Voyager Explorations Limited for each five common shares of Old Gold Summit held immediately prior to the Arrangement Effective Date.
Effective July 10, 2003, the common shares of the Corporation commenced trading under the symbol 'GSM.'Letters of Transmittal will be sent to the shareholders of record of Old Gold Summit to facilitate the share exchange.
New Board of Directors
The board of directors of the Corporation are Douglas R. Cook, Dr. Anthony Taylor, Larry Kornze, Dr. James Pirie, and Anthony Roodenburg.
Douglas R. Cook, Chairman, is a distinguished Economic Geologist with a career spanning almost 60 years. After 21 years and senior appointments with Kennecott and Exxon, Doug became President of Freeport Exploration in 1974, a Freeport subsidiary that made discoveries with profits of over $500 million. These include the Jarritt Canyon gold deposits in Nevada and the Ertsberg East deposits in Irian Jaya. Doug is currently Chairman of Atlas Corporation.
Dr. Anthony P. Taylor, President, Chief Executive Officer, has 38 years of international minerals exploration experience. Tony has a track record of hands-on experience and management in the discovery of nickel, platinum, copper-zinc and gold deposits in Australia, South Africa and the United States with Cominco, Selection Trust, BP Minerals, Kennecott and Gencor. As Exploration Manager for Selection Trust and BP Minerals in the United States, Tony was responsible for exploration aspects of development at the Alligator Ridge Mine (Nevada), the Colosseum deposit (California) and the Ridgeway deposit (South Carolina). Dr. Taylor is a Director of Hecla Mining Company.
Larry Kornze has recently retired from Barrick Gold as General Manager Exploration for Mexico and Central America and International Evaluations. Prior responsibilities included US Exploration Manager, Barrick Gold Exploration Inc., particularly for Goldstrike Mine area exploration, with discoveries at Betze, Meikle, Deepstar, Screamer and Rodeo. The Goldstrike Mine is Barrick Gold Corporation's flagship mine producing approximately 2.4 million ounces of gold during 2000. Prior to joining Barrick in 1985, Larry held various positions with Newmont and Getty Mining Co. in North America. Larry is a Director of Candente Minerals, European Goldfields and Duncan Park Holdings.
Dr. James Pirie is an experienced exploration geologist with over 30 years experience in Canada, the U.S.A., Europe, Asia and Latin America. Additionally, Dr. Pirie has held senior positions with Breakwater, Granduc Mining, Homestake Canada and Esso Minerals.
Anthony Roodenburg is a financial executive with over 15 years of experience in the finance, administration and corporate development of public companies. Mr. Roodenburg also held the position of Investment Executive with National Bank Financial from 1987 to 1991.
Private Placement Financing Completed (the 'Private Placement')
The Corporation is pleased to announce that it has closed its previously announced private placement of 4,405,001 units at a price of $0.30 per unit for total gross proceeds of $1,321,500. Each unit consists of one common share and one common share purchase warrant. Each such warrant entitles the holder thereof to purchase one additional common share of the Corporation at $0.45 until January 24, 2005. McFarlane Gordon Inc. ('MG') acted as agent in connection with the offering of 4,405,001 units. MG will receive a cash fee, equal to seven per cent of the gross proceeds realized from the private placement, as well as non-transferable agent's compensation options entitling it to purchase 308,350 units at a price of $0.30 per unit, which units will have the same characteristics of the units sold pursuant to the private placement.
Fiscal Advisory Agreement
Pursuant to a fiscal advisory agreement, dated May 27, 2003, between the Corporation and MG ( the 'Fiscal Agreement'), MG will provide fiscal advisory services to the Corporation for a period of six months. Compensation payable to MG under the Fiscal Agreement includes 400,000 warrants entitling MG to purchase one unit at a price of $0.30 until January 24, 2005. The units are identical to those sold under the private placement.
Non-Brokered Private Placement
The Corporation is pleased to announce that a further non-brokered private placement of 350,000 units, with similar characteristics of the units offered pursuant to the brokered private placement, is expected to close next week.
After giving effect to the Acquisition and Private Placement, the Corporation has 12,565,649 common shares issued and 23,881,595 on a fully diluted basis.
Shares Outstanding: 12,565,649
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Gold Summit Corporation Anthony Roodenburg Director (416) 485-1327 or Gold Summit Corporation James Pirie Director (416) 367-4571 Ext. 228 www.goldsummitmines.com
NEWS RELEASE TRANSMITTED BY CCNMatthews The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. Copyright (C) 2003, CCNMatthews. All rights reserved. |
