GON Gondwana Gold

TORONTO, July 14, 2011 /CNW/ -- TORONTO, July 14, 2011 /CNW/ - Gondwana Gold Inc. (the "Company") (TSXV: GON) today announced that it has entered into an agreement to acquire the shares of LMZ Gold (Burkina) SARL ("Burkinaco"), a private  Burkina Faso company. Burkinaco would, as a wholly owned subsidiary, act as the Company's in-country operating entity and endeavour to build a portfolio of value added gold exploration properties. Burkinaco holds an option to acquire a 100% interest in the Kasseba permit in Burkina Faso. The Kasseba property covers approximately 232 sq km and is located approximately 125 km northwest of Ouagadougou, the capital of Burkina Faso, on the Yako-Ouahigouya Highway RN-2. The property is accessible on paved road to Yako and Gourcy and on dirt roads and tracks. There is limited but sufficient infrastructure in the area and good water access. The property shows northeast-trending Birrimian metasedimentary sequences on which geological survey and regional soil sampling has been planned. Burkinaco is entitled to earn its 100% interest in the Kasseba permit if it makes aggregate payments of US$210,000 over a 3 year period. The Kasseba property is subject to a 1% Net Smelter Royalty in favour of the current holder of the Kasseba permit, which may be bought out at anytime for US$1,000,000. Burkinaco is also currently in the process of finalizing the acquisition of three permits: Permit #1 which covers approximately 248 sq km is located approximately 300 km southwest of Ouagadougou and is easily accessible through Boromo on paved and dirt roads.  There exists sufficient infrastructure in the area to support exploration along with good water access. The area is known to contain numerous active artisanal gold working sites. The property is underlain by favorable north-trending Birrimian volcano-sedimentary sequences in which vein and stockwork mineralization has been described. Detailed geological survey and soil sampling is planned in the northern part of the permit as well as RC drilling on various related targets. Permit # 2 which covers approximately 140 sq km is located approximately 450 km southwest of Ouagadougou near the Ghana border and is easily accessible through Boromo and Gaoua on paved and dirt roads. There exists sufficient infrastructure in the area to support exploration along with good water access. The area contains numerous active artisanal gold working sites. The property is located in the southern Birrimian Boromo volcanic belt and is underlain by favorable north-trending metasedimentary sequences, mafic metavolcanic and intrusive rocks.  Mineralization has been described in sulfide bearing silicified and schistosed deformation zones. Detailed soil sampling and geology has been planned on soil and outcrop targets with follow-up RC drilling. Permit # 3 which covers approximately 181 sq km is located approximately 160 km southwest of Ouagadougou on the Boromo highway and is easily accessible. There exists sufficient infrastructure in the area to support exploration. The property is located along the eastern margin of the Birrimian Boromo volcanic belt and is underlain by metabasic and granitoid rocks. Detailed soil sampling and geology has been planned on soil and outcrop. The agreement provides that subject to the issuance of each of Permits #1, #2 and #3 to Burkinaco, the Company will pay the following cash and share consideration to the vendor of the Burkinaco shares and the vendor's wholly owned company: for each of Permits #1 and 2 the sum of US$135,000 plus 562,500 common shares of the Company and for Permit #3 the sum of US$30,000 plus 155,000 common shares of the Company. No cash or share consideration will be payable for Permit #3 unless both Permit #1 and Permit #2 have been issued. If Permits #1, #2 and #3 are not received by December 31, 2011, the agreement may be renegotiated up to June 30, 2012. The Company has advanced monies in recent months to Burkinaco on a demand loan basis, which monies were used principally to acquire the Kasseba option and for geological services. Completion of the share purchase transaction is subject to the customary closing conditions and receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. About the Company Gondwana Gold Inc. is focused on pursuing exploration and development opportunities within the mining sector. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Caution Concerning Forward-Looking Information This news release contains forward-looking statements that are based on the Corporation's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Corporation's intent to complete the acquisition of shares of Burkinaco and the timing thereof, its plans with respect to Burkinaco acting as the Company's in-country operating entity and endeavouring to build a portfolio of value added gold exploration permits, and pursuing acquisition opportunities within the mining sector. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Factors that may cause actual results to vary materially include, but are not limited to, the Corporation's financial resources and the availability of financing alternatives, changes in general economic conditions or conditions in the financial markets, the availability of suitable exploration properties, the speculative nature of mineral exploration, and unanticipated operational or technical difficulties. Such forward-looking information is based on a number of assumptions, including but not limited to, the availability of financing, no significant decline in existing general business and economic conditions, the level and volatility of mineral prices and receipt of the approval of the TSX Venture Exchange and any other applicable regulatory authority. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/14/c5375.html p bGo/bbndwana Gold Inc./bbr/ bYves Grou/bbr/ Presidentbr/ Phone: (514) 237-7757 /p

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