CHICAGO, IL -- (MARKET WIRE) -- 03/07/11 --
Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to announce a distribution of one Tara Minerals Corp. common share for every 20 outstanding shares of Tara Gold. Tara Gold currently owns 40,898,190 shares or approximately 71% of Tara Minerals. It is the intention of Tara Gold to distribute all 40,898,190 Tara Minerals shares to its shareholders over the next 24 months. The record date for the current distribution will be announced when required filings have been reviewed by FINRA.
In addition, we like to provide the following update regarding recent events.
On December 9, 2010, Paramount Gold reported drilling results from their Don Ese target located in close proximity to Tara Gold's 100% owned La Currita. Updates were released on December 21, 2010 and February 1, 2011. This has resulted in a number of parties indicating their interest in La Currita, a past producing gold/silver project which borders the southeast end of Coeur d'Alene's Guadalupe deposit in the south end of the Palmarejo District. Palmarejo has the capacity to produce an average of approximately 120,000 ounces of gold and 9.0 million ounces of silver annually. At La Currita, a mineralized structure is exposed on surface for over 1 km, with 6 developed levels and samples returning up to 5 g/t gold and 600 g/t silver. La Currita has the potential for a near-term production scenario.
On October 15, 2010, Cayden Resources Inc., which trades on the TSX venture exchange, entered into an option agreement with La Camera Mining Inc. to acquire its Morelos Sur gold property. An amendment to the agreement was announced on December 21, 2010. On February 16, 2010, Cayden announced that it has exercised its option agreement with La Camera Mining. The property is currently being drilled by Cayden. Tara Gold owns 1.5 million shares of La Camera which will now be converted to Cayden shares and warrants.
On December 21, 2010, NWM Mining announced the initial production of gold and silver from its Lluvia-Jojoba Project in northern Sonora, Mexico. Tara Gold sold the Lluvia de Oro project to NWM. In addition to cash, Tara Gold was paid 2.5 million shares in NWM Mining Corp. and may earn an additional 2.5 million shares upon NWM reaching a pre-defined production target.
Considering these recent developments, and the near term potential for increasing the fundamental value of Tara Gold's holdings, Tara Gold has elected not to move forward with the tentative share exchange agreement with Tara Minerals announced on September 13, 2010. The announced distribution results in accomplishing one of the main outcomes of the transaction, the distribution of Tara Mineral shares to Tara Gold shareholders.
"We have always been guided by shareholder value with each decision and investment we make. This distribution rewards our shareholders and delivers the full value of this investment in the most efficient manner," said Mr. Francis Biscan Jr., President of Tara Gold.
Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) was organized by Tara Gold on May 12, 2006 under the laws of the State of Nevada. Tara Minerals is currently engaged in the development of the Don Roman silver/zinc/lead mine and mill, owns approximately 87% of the common stock of Adit Resources Corp., and holds several other mineralized prospects.
Adit owns 100% of the Picacho prospect where nine gold-bearing veins over four mineralized target areas with an aggregate strike length of over 10.8 km has been identified. Adit recently completed a private placement and signed a Letter of Intent with Yamana Gold Inc. that grants Yamana an option to acquire up to a 70% interest in the Picacho gold/silver project (see news release dated Feb. 2, 2011). Drilling of approximately 5,300 m has been completed along only 600 m of the vein system, with true width intercepts including 11.3 m of 15.6 g/t gold, 6.1 m of 4.7 g/t gold, and 9.4 m of 7.8 g/t gold.
The 2,020 hectares Don Roman project lies 15 km SW of the historically prolific La Reforma silver/zinc/lead district that is the focus of concerted exploration by Peñoles. The concessions contain gold/zinc/lead/silver mineralization. Tara Minerals began mining Don Roman in 2009 from a 25 m thick zone dipping at approximately 30 degrees at average grades of 309 g/t silver, 9% zinc, and 3% lead. A mill has been built and currently has a capacity to process 240 t/d over 2 circuits. Tara Minerals has entertained a number of site visits from potential operating partners regarding a potential Joint Venture at Don Roman. Tara Minerals management will determine the most expedient approach to advancing Don Roman's near term production potential, whether by partnering with an experienced partner or by hiring a qualified operating team.
In October 2009, Tara Minerals discovered the San Felipe gold/silver vein just 1.5 km from the Don Roman mill. San Felipe has been outlined to 850 m length, 400 m at depth, open in all directions. Channel samples averaged 10.06 g/t gold and 149.85 g/t silver.
Additional mineralized structures have also been discovered on the Don Roman property. Tara Minerals also owns the Centenario project comprised of eight concessions totaling 5,400 hectares. It is adjacent to Don Roman and contains two gold/copper systems (17 g/t gold, 7% copper and 350 g/t silver), two lead/zinc/silver systems (8% lead, 9% zinc and 400 g/t silver), and indications of an iron ore system (67% iron ore, 6 g/t gold and 4% copper).
About Tara Gold Resources Corp. (http://www.TaraGoldResources.com)
Since its inception, Tara Gold has been focused on assembling a pipeline of high-quality precious and non-precious metals projects with potential for economic commercial value. To date, it has added value and profitably sold the San Miguel silver/gold project, and the Lluvia de Oro gold/silver/copper project. Tara Gold currently holds equity positions in La Camera Mining Inc. (a private mining company), NWM Mining Corporation (a public mining company producing gold, silver and copper) and 71 % of Tara Minerals Corp. Tara Gold also continues to hold several prospective projects, including a past gold/silver producer.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Source: Tara Gold Resources Corp.