Home > Local News > Mahdia Gold Corp. Announces $2,000,000 Private Placement and Negotiations to Acquire GUY Whitecreek

Mahdia Gold Corp. Announces $2,000,000 Private Placement and Negotiations to Acquire GUY Whitecreek

MISSISSAUGA, ONTARIO (Marketwire) – Mahdia Gold Corp announces a private placement financing of $2,000,000 for property acquisitions and working capital purposes. The financing will close on August 6th, 2010. The financing will be a share issue of 10,000,000 units. Each unit will comprise of one share at $0.20 with a half warrant. One full warrant at $0.40 exercisable for two years.

Mahdia Gold Corp announces negotiations to acquire the Whitecreek gold bearing property in Guyana.

The company is in negotiations to acquire 100% of the hard rock mineral rights to the Whitecreek gold bearing property. The Whitecreek property was owned by Stratagold Resources (TSXV) and Stratagold’s Guyana’s activities were partly financed by Newmont Mining. Stratagold no longer controls the Whitecreek gold property. Mahdia Gold Corp is in a position to acquire what could become a valuable asset for Mahdia Gold Corp.  The Whitecreek property is a highly mineralized area and could hold potential for gold discoveries. Mahdia intends to conduct an aggressive exploration program on Whitecreek if it is acquired.

White Creek History

The White Creek property was originally explored by the BHP World Discovery Group in 1998. Regional stream sediment sampling identified a number of drainage basins radiating from the White Creek property that returned anomalous gold. BHP then conducted a widely spaced (1.4 km x 400 metre) soil geochemistry survey and identified a large gold in soil anomaly. However, BHP never conducted any further work on this property. This gold anomaly is considered to be the eastern extension of the Arakaka trend, a northeast-trending mineralized and structural corridor within the Barima-Waini District of Northwestern Guyana. StrataGold and Newmont held at that time, the dominant land position in the Arakaka region.

In 2007, StrataGold and Newmont re-sampled the drainage basins as well as one of the historical BHP soil lines on the White Creek property and confirmed the presence of significant gold values in both stream sediments and soil anomalies over > 6.0 km in length. In late January 2008, road access was improved and a 30 man base camp was established on the property. A 2008 Exploration Program was planned back then to commence at a cost of CDN $150,000 to focus on delineating the bedrock source from the historical soil geochemistry. Phase I exploration plans included 50 km of line cutting and the collection of approximately 950 soil samples on established grids. The work included planned detailed mapping, trenching and channel sampling. Prospective gold targets to be prioritized and selected for a further planned Phase 2 of the exploration program to include ground geophysics, diamond drilling and further regional exploration.

Mahdia Gold Corp currently owns the mineral rights to ten claims located on the Tiger River property. The Tiger River property adjoins the IAMGOLD gold bearing property called Eagle Mountain. A significant gold deposit has been identified on the adjoining Eagle Mountain property.

ADDITIONAL OPPORTUNITIES.

Mahdia Gold Corp is actively engaged with mineral rights holders so additional gold bearing properties of merit in Guyana, for the purposes of acquiring more gold bearing concessions. Mahdia Gold with the assistance of its Guyanese counsel Robert Corbin (Guyana Leader of the parliamentary Opposition and former deputy Prime Minister), is talking to the Guyana Government about other assets of significance for Mahdia Gold Corp. The company will make further announcements on any further acquisition of more gold bearing concessions as they develop.

Mahdia Gold Corp currently has 37,931,582 shares outstanding.

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