For immediate release
August 15 , 2006
MEDIA RELEASE
DE BEERS CANADA ANNOUNCES PURCHASE OF PURE GOLD SHARES
Toronto, Tuesday August 15, 2006 – De Beers Canada Inc. (“De Beers”) announces that it has purchased 27,500,000 common shares of Pure Gold Minerals Inc. (“Pure Gold”) plus warrants to acquire an additional 5,000,000 common shares, pursuant to a property option agreement with Pure Gold (the “Option Agreement”). The consideration for the purchase of these securities was the grant to Pure Gold of the sole and exclusive right to acquire an undivided 85% co-ownership interest in certain exploration properties and to enter into an exploration joint venture with De Beers relating to those properties and the payment by De Beers of $600,000 to Pure Gold. 10,000,000 of the Pure Gold common shares purchased by De Beers are subject to a lock-up agreement (the “Lock-Up Agreement”) that requires De Beers to return the shares for cancellation if Pure Gold does not meet certain expenditure obligations under the Option Agreement. If at any time Pure Gold gives notice that it is terminating the Option Agreement, any shares that have not been released from the Lock-Up Agreement shall be returned by De Beers for cancellation.
As a result of this transaction De Beers beneficially owns and controls 12.07% of the issued and outstanding Pure Gold common shares (after giving effect to the exercise of the aforementioned warrants). The common shares and warrants were acquired for investment purposes. An Early Warning Report respecting this transaction has been filed on SEDAR and can be reviewed at www.sedar.com.
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| For further information contact: |
Linda Dorrington
Manager Public and Corporate Affairs
De Beers Canada Inc
Telephone: 416-645-1710 ext 2107
Email: linda.dorrington@ca.debeersgroup.com |
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