UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 5, 2007
Global Gold Corporation
(Exact name of registrant as specified in its charter)
Delaware 02-69494 13-3025550
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(State or other jurisdiction (Commission (IRS
of incorporation) File Number) Identification No.)
45 East Putnam Avenue, Greenwich, CT 06830
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code (203) 422-2300
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 133-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
Global Gold Corporation (the "Company") has entered into agreements with members of the Quijano family by which the Company has the option to earn a 51% interest in the Madre de Dios property in south central Chile, near Valdivia. The mineral concessions were acquired by the joint venture partner, by map staking and Ministerial approval. The agreements, dated August 9, 2007 and August 19, 2007, were subject to confidentiality provisions. The Company has retained Scott Wilson Roscoe Postle, a leading independent geological and mining consulting firm to conduct a property review. After preliminary due diligence, the Company made the first 250,000 euro payment toward the acquisition and paid government fees on September 5 and 6, 2007.
The acquisition is subject to final documentation and further due diligence to be completed by October 14, 2007. Key agreement terms include: A 500,000 euro deposit, (of which 250,000 euros was released on Sept. 5, 2007); provided the subsequent due diligence is also satisfactorily completed, the additional 250,000 euros will be released on or before October 1, 2007; if the Company elects to continue, a joint venture company will be formed with equity interests at 51%-49% in favor of the Company (including 3 directors two of whom will be appointed by the Company); also upon formation of the joint venture company and transfer of properties, the payment of an additional 500,000 euros will be made; the Company commits to finance at least one plant and mining operation within 6 months as well as a mutually agreed exploration program to establish proven reserves; if that is successful, two additional plants/operations will be financed within a year; from the profits of the joint venture, the Company will pay its partner an extra share based on the following scale of 28 million euros for (a) 5 million ounces of gold produced in 5 years or (b) 5 million ounces of gold proven as reserves according to Canadian 43-101 standards in 5 years, (if production is only 2.5 million ounces in 5 years, the extra profit share totals only 14 million euros, and if production in 5 years is 10 million ounces of gold the extra profit share would total 56 million euros), all as described in the exhibits, 10.3 and 10.4, below.
Item 8.01 Other Events
Consistent with the applicable confidentiality agreement terms, on September 7, 2007, the Company issued a press release announcing that the Company has entered into agreements with members of the Quijano family by which the Company has the option to earn a 51% interest in the Madre de Dios property in south central Chile, near Valdivia.
A copy of the Company's press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01 Exhibits
Exhibit No. Description
10.3 Material Contract - Madre de Dios Mining Property Joint
Venture and Options for Chiloe and Ipuin Island Properties
Agreement dated as of August 9, 2007.
10.4 Material Contract - (Unofficial English Translation)
Commitment to Contribute Mining Concession to a Contractual
Mining Company dated as of August 19, 2007.
99.1 Press release on September 7, 2007, by Global Gold Corp.
Announcing The Acquisition of a 20 Thousand Plus Hectare
Placer and Hard Rock Gold Property in Chile.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: September 7, 2007 Global Gold Corporation
By: /s/Van Z. Krikorian
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Name: Van Z. Krikorian
Title: Chairman and Chief
Executive Officer
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August 9, 2007
Juan Jose Quijano Fernandez
El Vergel 2316
Santiago Chile
RE: Madre de Dios Mining Property Joint Venture and Options for Chiloe and Ipuin Island Properties
Dear Juan Jose:
I am pleased to confirm that our board has authorized our Chilean subsidiary to proceed with the joint venture on the Madre de Dios mining project that we have been discussing. I know our attorney, Mr. Jose Manuel Borques has been in touch with you, and we appreciate your working with him to expedite and complete the due diligence and joint venture formation. Dr. Ted Urquhart is planning to return to Santiago on August 14, and we have arranged for our technical expert in placer deposits to visit Santiago and the property during the week of August 20. In addition, we are interested in pursuing options on the Ipuin and Chiloe projects now, and we would also like Dr. Urquhart to visit the Lippangue property after he returns. Our commitment, as you understand, is subject to completion of satisfactory legal and technical due diligence.
In summary, the terms for the Madre de Dios project are as follows: a 500,000 euro deposit upon execution of the acquisition agreement anticipated to be on August 14, 2007 (provided our preliminary due diligence is satisfactorily completed 250,000 euros will be released to you as a payment from this deposit on or before September 3, 2007, and, provided the subsequent due diligence is also satisfactorily completed, the additional 250,00 euros will be released to you from this deposit on or before October 1, 2007); a 60 day due diligence period; upon our satisfaction with the due diligence, the formation of a joint venture company 51-49 in favor of Global Gold (including 3 directors two of whom will be appointed by Global Gold, myself and Dr. Urquhart, but with certain major issues decided unanimously); also upon formation of the joint venture company and transfer of properties, the payment of an additional 500,000 euros bringing the total payment to 1 million euros at the start (with the release of the prior deposit); Global Gold commits to finance at least one plant and mining
operation within 6 months as well as a mutually agreed exploration program to establish proven reserves according to Canadian 43-101 standards (estimated to be up to $3 million--we acknowledge that you think that plant will be closer to $1.3 million, but are prepared to commit up to $3 million), if that is successful we will finance two additional plants/operations within a year; from the profit of the joint venture, you will be entitled to an extra share based on the following scale of 28 million euros for (a) 5 million ounces of gold produced in 5 years or (b) 5 million ounces of gold proven as reserves according to Canadian 43-101 standards in 5 years- so, if within five years the joint venture produces 5 million ounces of gold you would get 27 million additional euros (bringing the total to the 28 million euros), if we only recover 2.5 million ounces in 5 years, you get an extra profit share to total to 14 million euros, and if in 5 years we produce 10 million ounces of gold would get an extra profit share to total to 56 million euros (payments to you will come as the joint venture produces gold as mutually agreed , for example after the production of every 100,000 or 250,000 ounces); and part of our payments to you on the Madre de Dios and/or other properties/options may be in Global Gold stock on mutually agreeable terms.
As an advance on our investment in the joint venture, we will also pay on or before August 29, 2007 $60,000 USD to cover payment due to the government to maintain the license on the Madre de Dios property. On or before August 29, 2007 we will also pay $100,000 USD to acquire a three month exclusive option to acquire the Ipuin Island and Chiloe Island projects on mutually agreeable terms; this $100,000 payment will be used to cover government charges and mensura fees for those properties.
If you have any comments or questions on this feel free to discuss them with Mr. Borquez or call me directly. If you are in agreement with the foregoing, please so indicate by signing and returning one copy of this letter agreement, whereupon it will constitute our agreement with respect to the subject matter hereof.
We all look forward to a bright future together.
Sincerely yours,
Global Gold Corporation
Confirmed and Agreed to:
Date: ___________________
COMMITMENT TO CONTRIBUTE MINING CONCESSIONS TO A
CONTRACTUAL MINING COMPANY
In Santiago, Chile, on August 19, 2007, by and between Mr. Juan Jose Quijano Fernandez, mining entrepreneur, and Mr. Juan Jose Quijano Claro, business manager, both Chilean, for themseves and on behalf of the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, all domiciled for this purposes at El Vergel 2316, Providencia, Santiago, and, Mr. William Edward Shouldice Urquhart, geophycisist, canadian, on behalf of Minera Global Chile Limitada, and they state that they appear on this day to commit to create a contractual mining company based fundamentally on the terms laid out in the August 9, 2007 letter agreement executed by Global Gold Corporation and Juan Jose Quijano Fernandez which is made an integral part of this commitment as Annex A:
FIRST:
Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro, are owners and/or controllers of the companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil,that own mining concessions either created or in the process of being created located in the districts of Mariquina, Mafil, Lanco and Panguipulli in the province of Valdivia, Tenth Region de los Lagos. The details of these properties and its status is listed in Annex B that is deemed as an integral part of this agreement. The referred properties that amount to 186 are recorded in the Mining Registrar of Mariquina and its total surface amount to approximately 25.000 hectares.
SECOND:
Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro for themselves and on behalf of the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, commit to contribute the mining concessions listed in the Annex B to Sociedad Contractual Minera Oro del Sur that shall be formed between Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro for themseves and on behalf of the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, and Minera Global Chile Limitada. Mr. William Edward Shouldice Urquhart, accepts the commitment to contribute the mining concessions on behalf of Minera Global Chile Limitada.
THIRD:
As compensation for this commitment to contribute the mining concessions listed in Annex B, Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro and the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, shall receive 49% of the shares of Sociedad Contractual Minera Oro del Sur and Minera Global Chile Limitada shall receive 51%. The latter shall be entitled to appoint two directors and Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro and the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, shall appoint one director of a three member.Board of Directors.
FOURTH:
In addition, as a direct consequence of signing this Commitment Agreement and
and granting Minera Global Chile Limitada an exclusive right to review within
sixty days the mining concessions listed in Annex B, Mr. Juan Jose Quijano
Fernandez and Mr. Juan Jose Quijano Claro and the legal mining companies called
S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de
la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina,
Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y
S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna
de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al
60 de la Comuna de Mafil, shall receive a compensatory payment for the fact that
they will be damaged by the withdrawal of the properties from the market for
sixty days, of one million euros in its equivalent in Chilean pesos based on the
exchange rate applicable in the day of payment that shall be paid in the
following manner:
a. 250.000 euros at the moment that the prelimianry technical review is
completed within the term that elapses on September 3, 2007 at the
complete satisfaction of Minera Global Chile Limitada.
b. 250.000 euros at the moment that the further technical and legal review
is completed within the term that elapses on October 1, 2007 at the
complete satisfaction of Minera Global Chile Limitada.
c. 500.000 euros in its equivalent in Chilean pesos based on the exchange
rate applicable at the moment of the execution of the agreement that
creates the contractual mining company within the term that cannot go
further than October 19, 2007.
The payments referred to in letters a) and b) shall be subject to the
fulfillment of the following conditions:
1. That the technical and geological aspects are evaluated favorably by
Minera Global Chile Limitada.
2. That the legal aspects are evaluated favorably by Minera Global Gold
Chile Limitada.
3. Minera Global Chile Limitada delivers to the Notary a written
instruction together with two checks for $ 179.325.000 in the names of
Juan Jose Quijano Fernandez , and Juan Jose Quijano Claro, so that the
Notary shall deliver each of them provided that they show to the Notary
a letter from Mr.William Edward Shouldice Urquhart , in each case, in
which Minera Global Chile Limitada states that it deems the
requirements set in numbers 1 and 2 of this paragraph as fulfilled.
FIFTH:
Aditionally, the payment of the late mining fees and surveys that amounts to US$ 70.000 shall be borne by Minera Global Gold Chile Limitada whithout any right to reimbursement and it shall make the payments on or before August 31, 2007.
SIXTH:
The agreement that creates the contractual mining company shall be executed within 60 days from the date of the execution of this agreement through the execution of a public deed in which a contractual mining company is created. The term for the execution of the said agreement is suspensive and not extinctive, and, therefore, at its lapsing the fulfilling party shall be entitled to demand compliance with this agreement or its resolution, in both cases with an entitlement to sue for damages.
Both parties or one of them shall ask Mrs. Antonieta Mendoza Escalas, Notary Public of Santiago, to grant the public deed as evidence of the creation of a contractual mining company with all documents and certifications that may apply. For all the purposes of this agreement, a certification by the Notary Public that a party has appeared before him willing to execute the committed agreement shall be enough evidence of the willingness of such party once the conditions and terms are met.
In the event that Minera Global Chile Limitada is in full compliance of the provisions of this agreement and, particularly, having fulfilled its obligations under letters a) and b) of Clause Fourth, if the committing contributor, by a deed that is attributable to it and is under its control refuses to execute the committed agreement of creation of a contractual mining company, in the form and terms provided by this agreement, it shall pay Minera Global Chile Limitada, as anticipated and punitive damages, a fine that amounts to a total of 500.000 euros in its equivalent in Chilean pesos, which is the amount in which the parties evaluate the said damages. Notwithstanding its right to sue for damages and payment of the agreed upon amount, Minera Global Chile Limitada, shall be entitled to sue for the compulsory fulfillment of this agreement.
SEVENTH:
With the purpose of guaranteeing the fulfillment of this agreement, the committing contributor agrees to a voluntary prohibition to sell and pledge in favor of Minera Global Chile Limitada over the mining concessions listed in Annex B during all the time in which this agreement is in force and effect and until the date set for the creation of the committed contractual mining company. Minera Global Gold Chile Limitada may request the recording of this prohibition to the Mining Registrar.
EIGHTH:
For all legal purposes the parties set their domicile in the city and district of Santiago and submit to its Courts of Justice.
NINTH: notwithstanding its nature as a public deed, the parties shall use its best efforts to keep this transaction as well as the relationship between the parties as confidential.
TENTH: Each of the parties shall be entitled to assign this agreement to a subsidiary or affiliate without the authorization of the other. In particular, Minera Global Chile Limitada may choose not to create a contractual mining company and instead, use Minera Global Chile Limitada as the vehicle to implement the transaction related to the properties listed in the Annex B. so that its parent company, Global Gold Corporation controls 51% of Minera Global Chile Limitada and Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro and the legal mining companies called are the owners of 49% of the same.
ELEVENTH: The parties agree that, should Minera Global Chile Limitada choose to exercise the option granted to it by the preceding clause, its parent company, Global Gold Corporation shall own or control 51% of Minera Global Chile Limitada and Mr. Juan Jose Quijano Fernandez and Mr. Juan Jose Quijano Claro and the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, shall be the owners or controllers of a 49% of the same and they shall not contribute or concur to any capital increases.
TWELVETH: The contractual mining company that may be created by Minera Global
Chile Limitada shall have By-Laws that will be negotiated between the parties to
this agreement between the date of this agreement and October 19, 2007. The
following shall be an integral part of the said agreement to create a
contractual mining company:
a. That the shares of the contributing party or owner that represent 49%
of the equity shall not contribute or concur to any capital increases.
b. That an amount equivalent to 27 million euros that shall be paid to the
contributing party in exchange for the 51% that shall be owned by
Minera Global Chile Limitada or one of the Global Gold Group of
Companies, shall be paid quarterly to the owners with at least 25% of
the profits that are received as a result of the operation and mining
of the project until such debt is retired, all within different tax
seasons.
c. That the investing party commits to the contributors to pay a minimum
of 15% of the debt referred to in the preceding letter through the
delivery of free trading shares or stock options.
d. That such base price may be increased as a result of the geological
exploration that the investing party is committed to make within a
maximum term of five years and should such exploration yield a proven
reserve of more than 5 million ounces of equivalent gold in accordance
to Canadian Regulations N(0) 43-101, then the base price shall be
increased according to the letter agreement dated August 9, 2007
executed by Global Gold Corporation and Mr. Juan Jose Quijano
Fernandez.
THIRTEENTH:
Messrs. Juan Jose Quijano Fernandez and Juan Jose Quijano Claro appear in this same act and act as an Assembly and sole shareholders of the legal mining companies called S.L.M. Columbo 61 al 120 de la Comuna de Mariquina, S.L.M. Columbo 121 al 180 de la Comuna de Mariquina, S.L.M., Columbo 181 al 220 de la Comuna de Mariquina, Alaska 1 al 60 de la Comuna Mafil, S.L.M. Roble 1 al 40 de la Comuna de Mafil y S.L.M. Roble 41 al 100 de la Comuna de Mafil, S.L.M. Konig 1 al 30 de la Comuna de Mafil, S.L.M. Konig 31 al 50 de la Comuna de Mafil y S.L.M. Troltrohue 1 al 60 de la Comuna de Mafil, such Assembly not needing a previous notification as all the shareholders are present and state their consent to this agreement of commitment and ratify each and every of its terms and conditions.
PERSONERIAS.-
GLOBAL GOLD ANNOUNCES THE ACQUISITION OF A 20
THOUSAND PLUS HECTARE PLACER AND HARD ROCK GOLD
PROPERTY IN CHILE
Greenwich, CT--September 7, 2007 - Global Gold Corporation (OTCBB-GBGD), is pleased to announce that the Company has entered into an agreement with members of the Quijano family by which Global Gold has the option to earn a 51% interest in the Madre de Dios property in south central Chile, near Valdivia. Mining history in this region goes back to at least 1556.
Van Krikorian, Chairman and Chief Executive Officer of Global Gold Corp. stated, "This is a significant and transformational acquisition for us. To consolidate mining claims of this size in a region with this rich a history and potential is remarkable. Our intentions are to continue exploration and begin production by the second quarter of 2008. We have already initiated a work program to focus on the continuity of the gravel deposits, outline economic placer gold deposits and develop the hard rock sites, some of which had been previously explored in the early and mid 1990s."
The mineral concessions were acquired by the joint venture partner, by map staking and Ministerial approval. Global Gold has retained Scott Wilson Roscoe Postle, a leading independent geological and mining consulting firm to conduct a property review. After preliminary due diligence, Global Gold made the first 250,000 euro payment toward the acquisition and paid government fees on September 5 and 6, 2007.
The Madre de Dios property encompasses four mineral claim groups covering over 20,000 hectares (ha) in south-central Chile. They consist of:
Mariquina: 100 claims covering approximately 15,085 ha. Mafil: 35 claims covering approximately 3,750 ha. Lanco: 45 claims covering approximately 5,440 ha. Panguipulli: 6 claims covering approximately 510 ha. |
The placer deposit is known to exist in a paleochannel which winds through the property The overall length of the mineralized paleochannel is estimated to range from 20 km to 50 km, and the gravel deposits have approximately the following dimensions: Length- 1 km to 3 km; Width- 80 m to 400 m; Thickness- 15 m to 40 m; and Overburden thickness- 2 m to 15 m. The actual gold grade is unknown, but gold is reported to be present everywhere, with the size of the nuggets ranging from 10 g to 50 g, and occasionally up to 120 g. The largest nugget discovered in the area is 126 g.
The area is located approximately 700km south of Santiago, Chile and is accessible by the Pan American Highway, approximately 60km from Valdiva with paved and gravel roads. Local infrastructure is available at San Jose de la Mariquina and nearby towns. Infrastructure at the site includes electrical power, cell phone network and road building equipment. Water, both industrial and potable, is drawn from wells.
Visible gold occurs in the gravels Field sampling of the bottom part of the gravels from various tunnels produced:
- 80 g Au/m(3) from blue gravel at the Amparo Tunnel.
- 200 g Au/m(3) from blue gravel at the Amparo Tunnel.
- 147 g Au/m(3) from blue gravel at the Cosme Tunnel.
- 2 g of gold from +/-1 m(3) of gravel at the Guadalupe Mine.
- Numerous gold grains (= 1mm) recovered from fine-grained magnetite-rich sands
at Roble South and La Fortuna sites.
The acquisition is subject to final documentation and further due diligence to be completed by October 14, 2007. Key agreement terms include: A 500,000 euro deposit, (of which 250,000 euros was released on Sept. 5, 2007); provided the subsequent due diligence is also satisfactorily completed, the additional 250,000 euros will be released on or before October 1, 2007; if Global Gold elects to continue, a joint venture company will be formed with equity interests at 51%-49% in favor of Global Gold (including 3 directors two of whom will be appointed by Global Gold); also upon formation of the joint venture company and transfer of properties, the payment of an additional 500,000 euros will be made; Global Gold commits to finance at least one plant and mining operation within 6 months as well as a mutually agreed exploration program to establish proven reserves; if that is successful, two additional plants/operations will be financed within a year; from the profits of the joint venture, Global Gold will pay its partner an extra share based on the following scale of 28 million euros for (a) 5 million ounces of gold produced in 5 years or (b) 5 million ounces of gold proven as reserves according to Canadian 43-101 standards in 5 years, (if production is only 2.5 million ounces in 5 years, the extra profit share totals only 14 million euros, and if production in 5 years is 10 million ounces of gold the extra profit share would total 56 million euros).
Global Gold Corporation is an international gold mining, development and exploration company with mining properties in Armenia, Chile and Canada, committed to building shareholder value and maintaining social and environmental responsibilities. Global Gold Mining LLC operates in Armenia as a subsidiary of Global Gold Corporation. Global Gold Uranium LLC, a wholly owned subsidiary of Global Gold Corporation, is engaged in the exploration for and development of uranium deposits in the province of Newfoundland and Labrador.
More information can be found at www.globalgoldcorp.com.
To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Contact Information:
Andrew Barwicki, Investor Relations
203-422-2320