Focus Gold Corporation Highlights Further Consolidation of Porphyry Gold Projects in the Sierra Madre Occidental Region of Mexico and Comments on the Rising Valuations in the Area
Press Release Source: Focus Gold Corp On Tuesday October 4, 2011, 8:28 am
RENO, NV--(Marketwire -10/04/11)- Focus Gold Corporation's (OTCQB: FGLD.OB - News) (OTC.BB: FGLD.OB - News) Management would like to highlight a recent transaction of a Porphyry gold project in Mexico as they feel it relates to the company's Huicicila Porphyry Gold project located in the state of Nayarit, Mexico.
Due to the recent high demand for Porphyry projects there has been a flurry of M&A in the sector. The most recent transaction being Agnico-Eagle's ($13.5 Billion enterprise value) friendly takeover of Grayd Resources for roughly $275,000,000 (or about $275/Oz resource) which is one of the richest valuations paid for a Porphyry project in Mexico to date -- especially for a non-proven reserve.
Agnico-Eagle Mines Limited acquired Grayd Resource Corporation for $2.80 per share by way of a take-over bid. The offer price of $2.80 per Grayd share represents a premium of 65.7% to the average price of Grayd shares on the TSX Venture Exchange for the 20-day period ended September 16, 2011.
Grayd owns a 100% interest in the La India Porphyry gold project located in the Mulatos Gold Belt of Sonora, Mexico. Grayd also recently discovered the Tarachi gold porphyry prospect located approximately 10 kilometers north of the La India project. Both projects are located in a large package of exploration concessions that total approximately 54,000 hectares. Grayd's properties lie at the opposite end of the same chain of mountains, the Sierra Madre Occidental, as our Nayarit project.
Grant R. White, CEO of Focus Gold Corp., commented, "It is no secret Porphyry gold deposits are in strong demand by the majors. Grayd developed a 1 million ounce resource in about 4 years, and in the process, took the stock from $0.25 to the take-out price of $2.80, a 1,000% return for Shareholders. In our opinion, our Nayarit project has multi million ounce potential if developed and explored properly."
Mr. White went on to say, "The facts are these types of projects are in large demand and for Grayd's project to be acquired for over $275/Oz only based on a resource and not a reserve speaks volumes for the valuation potential of our Nayarit project. Ubika's June 6th research report on Focus also highlighted the significant value of Porphyry systems and can be found on our website at www.focusgoldcorp.com."
