Perth, Oct 13, 2005 AEST (ABN Newswire) - Agreement has been reached with Canadian-listed Simberi Gold Corporation ("SGC") for Allied Gold Limited ("ALD") to purchase the outstanding 12.5% free carried interest ("FCI") in the Simberi Oxide Gold Project.

The purchase will be satisfied on or before the Settlement Date of 20 October 2005 by;

Payment of C$200,000 to SGC or its nominee,
The issue of two million fully paid Shares of ALD to SGC or its nominee,
The issue of two million ALD Options exercisable at 25 cents on or before 31 December 2006 to SGC or its nominee,
The issue of two million ALD Options exercisable at 50 cents on or before 31 December 2008 to SGC or its nominee,

SGC has agreed to voluntary escrow on a portion of the fully paid Shares issued, viz;
500,000 Shares for a period of 3 months from the Settlement Date,
1,000,000 Shares for a period of 6 months from the Settlement Date.

Prior to this Agreement, SGC held a 12.5% FCI in the Simberi Oxide Gold Project with ALD having the right to redeem the FCI by the issue of Shares of ALD on the earlier of a decision to mine being made by ALD, or 31 December 2009.

This final rationalisation of the previous Simberi Mining and Tabar Exploration Joint Ventures now enables ALD to press ahead with the development plans for the Simberi Oxide Gold Project as sole owner and operator.

Contact

Allied Gold Limited
+61 8 9353 3638 phone
+61 8 9353 4894 fax
email@alliedgold.com.au e-mail


Related Companies

Allied Gold Limited       

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