WPC SIGNS DEFINITIVE AGREEMENT WITH MANDALAY RESOURCES TO ACQUIRE THE LUPIN GOLD MINE AND THE ULU GOLD PROJECT
WPC Resources Inc. (WPQ.V) has signed a definitive agreement with Mandalay Resources Corp. to acquire Mandalay's 100-per-cent-owned subsidiary, Lupin Mines Inc. (LMI). LMI owns 100-per-cent interests in the Lupin gold mine and the Ulu gold property.
The Lupin Gold Mine (the "Lupin") was in production from 1982 to December 2004. Lupin was placed on to care and maintenance in February 2005. To date over 3.4 million ounces of gold have been mined and recovered from Lupin with an average mill-head grade of 8.9 grams per tonne (0.259 ounces per ton). Currently, Lupin holds all permits required to maintain its present good standing including a Type "A" water licence which allows for the transition from care and maintenance to the restart of operations and ultimately to commercial production. LMI also holds, in restricted cash accounts approximately $27.5 million, which have been pledged through letters of credit to cover future estimated environmental reclamation costs on the Properties.
Stephen Wilkinson, WPC's President and CEO commented, "The signing of the Agreement to acquire the Lupin Gold Mine and its 2,300 ton per day mill and processing plant together with the Ulu Gold Property is the start of a new era for WPC. Our strategy is to build a significant gold producer by taking advantage of the favourable purchase terms and advanced stage of the Properties. Post-closing, WPC will focus on leveraging the existing permits, infrastructure and defined near surface drill targets to bring Lupin into production in a shorter period and with lower capital costs than would be possible for a typical mining project. Immediately upon closing, the Company will focus on drilling to confirm a mine plan with a view to advancing toward restarting production."