C2C Becomes a Gold Producer

Yves Gagnon, president of C2C Gold Corporation Inc. has announced that the final agreements with David Andres Machuca Granda ('Machuca') have been signed. The documents were compiled in order to create a joint venture for the exploitation of the Paraiso_Pambil mine located in Ecuador, which makes C2C a gold producer. The Paraiso-Pambil mine has been in continuous production of gold for more than 25 years. 

C2C owns 50% of the joint venture for initial price of 1,100,000 $US. Later the additional payments would lead the amount to 1.900.000 $US. And the total investments that will be made for 24 months with the aim of improving gold production and extraction infrastructure will make 2,000,000 $US. Moreover, Mr. Machuca will receive 12 million C2C shares during 18 months. C2C plans to provide the joint venture with its technical assistance and its knowledge for developing the Paraiso-Pambil mine. 

Mr. Machuca will hold 50% of the joint venture while bringing into it all the assets and mineral rights necessary to the exploitation of the Paraiso-Pambil mine. 

C2C had declared that it had closed its private placement on December 5, 2008 with the total of 1 200 000 $. C2C issued 24 000 000 units of C2C. Each unit includes one common share of C2C with the price of 0,05 $ and one share purchase warrant. Holder of each share purchase warrant has a right to subscribe one common share at a price of 0,075 $ for 24 months from the closing of the private placement. 

The cancellation of 900 000 options granted in favor of Directors and the Senior Management in excess of the options plan in force at the time of the grant was approved during the annual general and special meeting of shareholders of C2C. It was decided to grant 900 000 additional new options in favor of the same Directors and Senior Management at the exercise price of 0,06 $. These options can be exercised for 5 years. C2C had granted 2 225 000 options at a price of 0,05 $ per option to its Directors and Senior Management on December 1 2008. 
C2C currently is in a good financial position with more than 2,5 million dollars in cash. Moreover, C2C has mill processing and laboratory equipments that will be assigned to the developments in Ecuador, such as agreed with Mr. Machuca. 
C2C is a mining company with gold projects that are being developed in Quebec and the south-west of Ecuador.

Source: MarketWire