With Japan Oil, Gas and Metals National Corporation (JOGMEC) for Rare Earth Elements in Malawi
9/8/2011 8:30:07 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Sep 8, 2011 (Marketwire via COMTEX News Network) --
Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce commencement of a rare earth elements (REE) exploration program in Malawi, Africa through its Joint Exploration Agreement (JEA) between the Company and its joint venture participant, Japan Oil, Gas and Metals National Corporation (JOGMEC). This joint venture was established in January 2009 with the goal of targeting strategic REE projects which can be brought into production within a reasonable time frame and capital requirements. A wholly owned joint venture subsidiary, named Spring Stone Limited, a Malawi Corporation, has been established to carry out REE exploration in Malawi. Under the JEA, the participating interest and contributions of each of the joint venture partners has been 80% JOGMEC and 20% Gold Canyon. However, Gold Canyon will increase its participating interest to 33% through pro rata contributions for this Malawi project.
An approximately 1,000 square kilometer Exclusive Prospecting License has been granted to the joint venture in Mulanje District in Malawi by the Malawi Ministry of Natural Resources, Energy and Environment. A US$1,000,000 exploration budget has been approved by the joint venture partners for the Phase One Exploration Program, which is currently underway. Mitsui Mineral Development Engineering Co., Ltd. (MINDECO) in Japan has been contracted as the operator of the program.
"Gold Canyon has been working on Rare Metals and REEs for over 10 years, but this Malawi Project is exceptionally intriguing for the Company," states Akiko Levinson, President of Gold Canyon. "While the Company remains focused on the advancement of our flagship Springpole Gold Project, we believe the Malawi REE Project is a unique opportunity to provide added value to our shareholders."
