Toronto, Ontario CANADA, Jan 04, 2006 (M2 PRESSWIRE via COMTEX) -- Vedron Gold Inc. (VG - TSX Venture), (FRANKFURT: VN3), is pleased to announce that on December 30, 2005 it has completed the purchase of 12,600,000 shares of Laurion Gold Inc ("Laurion"), as previously announced on December 7, 2005. The acquired shares were tendered to Laurion for cancellation as a part of Vedron's arrangement with Laurion to increase its interest in the Davidson Tisdale property.
Vedron's purchase of the Laurion shares is in furtherance of the Letter of Intent signed with Laurion, with respect to further amending the property option agreement between Vedron and Laurion, previously amended and announced on February 17, 2005.
In the Letter of Intent, Laurion and Vedron agreed to enter into an amended option agreement within the coming weeks (the "2006 Option Agreement"). Pursuant to the terms of this revised Agreement, Vedron is exercising its option to increase its ownership interest by an additional 40% in the Property, bringing its interest to 51% by making the following payments and deliveries to Laurion: (a) a cash payment to Laurion in the amount of $200,000; (b) issuing 600,000 Vedron Shares to Laurion; (c) issuing a convertible promissory note to Laurion in the principal amount of $200,000 bearing interest at 6% and due on July 31, 2006; and (d) surrendering to Laurion the 15,400,000 Laurion shares, of which 12,600,000 were acquired on December 30th, 2005, for cancellation. Vedron will also have the option of earning an additional 9% interest in the Property by spending an additional $1,000,000 in exploration work on the Property by March 14, 2008.
Vedron acquired the shares by entering into share exchange agreements with four shareholders of Laurion, acquiring 12,600,000 Laurion common shares in exchange for 5,431,035 common shares of Vedron. These were combined with the 2,800,000 Laurion shares previously owned by Vedron, to become the 15,400,000 shares tendered for cancellation under the 2006 Option Agreement.
Vedron Gold Inc. is a gold exploration and Development Company with properties located in Timmins, Ontario, Canada.
CONTACT: Tom Meredith, President, Vedron Gold Inc Tel: +1 416 368 0099 WWW: http://www.vedron.com
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