General Metals Upgrades 150-sq.-km. Nyhinahin Mining Concession, Ghana, West Africa from a Reconnaissance License to a Full Prospecting License
General Metals Corporation (the “Company”) (OTCBB:GNLM) is pleased to announce that its wholly owned subsidiary Mikite Gold Resources has received an offer from the Minerals Commission in Ghana to have its 150-sq.-km. Nyhinahin mineral concession upgraded from a reconnaissance license to a full prospecting license. The Nyinahin mining concession, near Bibiani, Ghana, has the mineral rights for gold, diamonds and base metals.
The Nyinahin mining concession is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east. The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The district is home to the famous Ashanti Goldfields-Obuasi Mines and is one of the most active exploratory areas in the world. Newmont Mining, alone, plans to spend three billion dollars exploring for gold and developing gold mines in Ghana. (See www.newmont.com)
The terms of acquisition required General Metals to issue 1,000,000 restricted common shares with 1,000,000 share purchase warrants attached, priced at $0.26 for a period of 2 years in satisfaction of full and complete payment for 100% interest in the above concession. The warrant holders have reconfirmed their intent to exercise these warrants to fund the Company's exploration plans, budgeted at $260,000 U.S. based upon geologists' recommendations.
Steve Parent, General Metals President and CEO, comments: “This acquisition gives us an operational Ghanaian corporation and a group of interested shareholders familiar with the area to assist in the development. The upgraded status allows us to conduct substantially more exploration than was previously allowed. This infrastructure will enable us to aggressively seek to acquire additional mining properties in the area as they become available. We are currently reviewing a fully permitted gold mine that may be available on favorable terms that is in the Confidentially stage at this time. Having Newmont as a neighbor gives us added confidence as well.”
Dan Forbush, CPA, MBA and the Company's CFO, said: “Acquisitions were the method we used at Glamis to rapidly grow the operations of the Company and we are of the same mind here at General. We are studying several near-term production opportunities in Nevada, Ghana, Mexico and Columbia at this time.”
About General Metals Corporation: The Company controls 100% of the Independence claims, which are completely surrounded by Newmont Mining's Phoenix Mine (www.newmont.com) and is a 240-acre island with legal access. Newmont enjoys 8.5 million ounces of gold and 660 million pounds of copper in reserves with substantial additional mineralized material, which is target to be upgraded. The Phoenix Mine is the largest operating gold mine in the U.S.
From 1983-1997, there were several exploration campaigns conducted on the Independence claims by Noranda, Teck Exploration, Northern Dynasty and Great Basin Minerals which resulted in about 80 reverse circulation and core drill holes being drilled and reported. The 1997 Carrington Report, the 1997 Akright Report, the 2006 Carew Report and the 2005 Frost and Larsen findings are available for review in their entirety at the Company's office in Reno, Nevada. An Executive Summary is available on the Company's website, www.generalmetalscorporation.com.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that any share purchase warrants will be exercised, the budget for the Nyhinahin exploration program, any exploration expenditures by Newmont in Ghana, or any further acquisitions in Ghana, either of a fully permitted gold mine or any other near-term production opportunities.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the fiscal year ended April 30, 2006, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
General Metals Corporation
Steve Parent, CEO, 775-686-6078