LA JOLLA, Calif., May 11, 2010 (GLOBE NEWSWIRE) -- Tonogold Resources, Inc. (Pink Sheets:TNGL) has received notice from Centerra (U.S.), Inc. that it is exercising its option to form a mining venture for the Tonopah Divide project.
Centerra (U.S.), Inc., a subsidiary of Centerra Gold Inc. (TSX:CG), is managing the exploration program at Tonopah Divide as part of an Exploration and Option Agreement with Tonogold Resources, Inc.
Centerra has given notice that it has satisfied the $2.7 million earn-in requirement of the Exploration and Option Agreement and is exercising its right to form a mining venture with initial participating interests of 60% for Centerra and 40% for Tonogold. The closing date for the transaction is July 16, 2010.
Centerra has elected not to exercise its second option to acquire an additional 15% participating interest for $5 million. Also, Tonogold has elected not to participate in the 2010 program and its participating interest will decrease to approximately 32% for the 2011 budget.
The proposed budget for 2010 is $1.04 million and includes a drill program totaling approximately 20,000 feet in 20 holes which is scheduled to begin in June. The primary targets for the drilling include North Monte Cristo, Victory Divide, the Gold Zone, and Divide East.
In the 1st quarter, Centerra continued with data compilation, drill chip logging, and land negotiations.
Tonogold Resources, Inc. is a minerals exploration company based in La Jolla, California. For more information on the Company visit their website www.tonogold.com.
Safe Harbor Statement Under the
Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking information about Tonogold Resources, Inc. ("Tonogold") which is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Tonogold Resources, Inc., that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: our lack of operating revenue and earnings history, our need for additional capital to pursue our business strategy, some of our managers lack formal training in the mining business, the grade and quantity of minerals in our projects may not be economic, we do not have fee title to our properties, but derive our rights through leases and the Mining Law, changes to the Mining Law may increase the cost of doing business, we are a non-reporting company and as such do not make periodic filings with the Securities and Exchange Commission, we trade on the Pink Sheets and there can be no assurances that a liquid market will develop in our securities, mining is subject to extensive environmental regulations and can create substantial environmental liabilities, gold and silver are commodities which have substantial price fluctuations, a drop in gold and/or silver prices could adversely affect future profitability and/or capital raising efforts, and mining can be dangerous and present operational hazards for employees and contractors. Readers are cautioned not to place undue reliance on these forward-looking statements. Tonogold does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.