31/10/2007 - 10:54

Shield abandons Majescor earn-in deal

31/10/2007 - 10:54

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West Perth-based gold and base metals explorer Shield Mining Ltd will not exercise an option to earn in on projects in Madagascar held by Canada-based Majescor Resources Inc, the company has announced.

West Perth-based gold and base metals explorer Shield Mining Ltd will not exercise an option to earn in on projects in Madagascar held by Canada-based Majescor Resources Inc, the company has announced.

Shield had planned to earn-in on the Besakoa gold and base metals project in exchange for the issuing of 500,000 shares and a commitment to spend around $1.1 million to earn a 50 per cent stake in the property - with a firm commitment to spend half that amount in the first year.

 

 

The full text of a Shield announcement is pasted below

Shield Mining Limited (ASX:SHX) has decided not to exercise its option under a Memorandum of Understanding ("MOU") signed with Majescor Resources Inc (TSXV: MAJ) on the 3rd August, 2007. Following an extensive geological (including a site visit), legal and financial due diligence on the Besakoa licence, Shield has now informed Majescor of its intention to not exercise its option.

However, Shield remains fully committed to exploration in Madagascar and has appointed Mr. Fred Bruvel as Manager-Geology for the Company as its Madagascan representative. Fred will be based in Antananarivo from the 3rd November, 2007 with a brief to look for opportunities in the country.

Fred is a very experienced geoscientist and for the last 27 years has been a senior geoscientist with the Queensland Department of Mines and Energy (DME) in Brisbane, Australia. Prior to this he has worked for Aurora Gold Pty (formerly A.O.(Aust) Pty Ltd), Geoterrex Pty Ltd and Schlumberger Inc. Fred has a Dip Ed., B.Sc., M.Sc., and MBA from Australian Universities.

Mr David Netherway, Shield Mining's CEO said today: "Fred's appointment is very exciting for Shield and reinforces our commitment to Madagascar as an underexplored country with extremely good geological potential."

Shield Mining Limited (SHX:ASX) is an Africa-focused gold and base metals explorer listed on the Australian Stock Exchange. Shield currently holds eight Group 2 (gold and base metals) licences, which cover an area of 11,364km2 in the northern region of Mauritania. In the southern part of the country, Shield holds 60% of a 1383km2 Group 2 licence. Another three Group 2 licences are currently under application, covering an area of 3699km2 together with six Group 4 (uranium) applications covering an area of 7264km2

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