Thu Sep 1, 2005
Tournigan announces a further $2.0 million private placement
Also Welcomes New Institutional Shareholder
Tournigan is pleased to announce a second non-brokered private placement of 5.0 million Units at $0.40 per Unit to raise gross proceeds of $2.0 million. Each Unit consists of one common share and one-half of a warrant, with each whole warrant entitling the holder to purchase an additional common share at an exercise price of $0.55 per share for two years. Tournigan may require the warrants to be exercised any time after the trading price of Tournigan's shares exceeds $1.00 per share for 30 consecutive trading days. This placement is additional to the non-brokered private placement of $2.0 million announced on August 23, with gross proceeds from these two placements totalling $4.0 million. A finder's fee equal to 7% of the gross proceeds will be paid on the second placement of $2.0 million only.
This private placement is subject to required regulatory and TSX Venture Exchange approvals.
This second placement allows Tournigan to fully fund its work programs on all three of its most advanced projects, including more rapid development of the Jahodna uranium project in Slovakia. Drilling at Jahodna is to start next week. Proceeds from these placements will also be used to upgrade historical resource estimates for the Spissky Teplice and the Novoveska Huta uranium deposits to National Instrument 43-101-compliant status. Work will also be continued on the Pre-Feasibility Study for the Kremnica gold project in Slovakia.
Tournigan's assets include the following deposits:
Sturec Gold Deposit, Slovakia - Smith and Kirkham, 2004
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Category Gold Silver Gold Tonnes Gold Silver Gold
(g/t) (g/t) Eq.* Oz Oz Eq.*
(g/t) Oz
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Indicated 2.11 15.43 2.31 5,663,941 384,231 2,809,802 421,540
Inferred 2.01 16.06 2.22 8,367,508 540,733 4,320,487 596,968
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Calculated using a 1 gram/tonne cutoff - see Feb 11, 2004 Tournigan Press Release
* Gold equivalent calculations are based on a price ratio of $385 to $5.50 (gold to silver).
Curraghinalt Gold Deposit, Northern Ireland - Tully, 2005
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Category Gold g/t Tonnes Gold Oz
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Inferred 15.45 527,700 262,018
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Calculated using a 6 gram/tonne cutoff - see Jan 27, 2005 Tournigan Press Release
Jahodna Historical Uranium Deposit - Uranovy prieksum, 1996
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Uranium* Molybdenum Tonnes Uranium Molybdenum
U3O8 % % lbs U3O8 lbs Metal
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0.541 0.38 1,150,000 13,720,000 9,630,000
0.221 0.38 1,080,000 5,250,000 9,050,000
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Not National Instrument 43-101 compliant resources - investors are cautioned not to rely upon this estimate
*Uranium metal grades converted to uranium oxide grades (U3O8) using a factor of 1.17
Spissky Teplice Historical Uranium Deposits - Uranovy prieksum, 1968-70
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Uranium* Molybdenum Tonnes Uranium
U3O8 % % lbs U3O8
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Svabovce 0.224 - 1,489,000 7,350,000
Spissky
Stiavnik 0.200 - 294,000 1,300,000
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Not National Instrument 43-101 compliant resources - investors are cautioned not to rely upon this estimate
*Uranium metal grades converted to uranium oxide grades (U3O8) using a factor of 1.17
Novoveska Huta Historical Uranium Deposit - Uranovy prieksum, 1985
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Uranium* Molybdenum Tonnes Uranium Molybdenum
U3O8 % % lbs U3O8 lbs Metal
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0.075 * 12,000,000 19,970,000 *
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Not National Instrument 43-101 compliant resources - investors are cautioned not to rely upon this estimate
*Uranium metal grades converted to uranium oxide grades (U3O8) using a factor of 1.17
Tournigan has reviewed the historical estimates for the Jahodna, Svabovce, Spissky Stiavnik, and Novoveska Huta uranium deposits and views them as relevant. The historic exploitation of Slovak uranium deposits in general and metallurgical test records acquired with Tournigan's deposits in particular suggests the reliability of the historical resource estimates. However, the Company has not done the work necessary to verify the classification of the resources and the resources are not categorized by the Canadian Institute of Mining, Metallurgical and Petroleum in their Standards on Mineral Resources and Reserves Definitions. The Slovak categories of Z-2 and Z-3 are roughly analogous to the CIM definitions Indicated and Inferred Resources, respectively.
New Institutional Shareholder
Tournigan is also pleased to announce that as part of a corporate transaction, Longview Strategies Inc. now owns 2.04 million Tournigan shares and has agreed to acquire a further 2.0 million Tournigan shares from RAB Capital, as announced by Longview on August 25, 2005. Longview Strategies is a new publicly-traded resource investment bank controlled by Damien Reynolds, CEO of Tournigan and Hein Poulus, Tournigan's Chairman, both of whom were responsible for restructuring Tournigan between 2001 and 2003. RAB Capital will continue to be a significant direct shareholder of Tournigan.
Damien Reynolds, President of Longview Strategies was quoted as saying "My belief in the value of Tournigan is well-known and it is fitting that Longview's first transaction involved the purchase of additional Tournigan shares. Tournigan's gold and uranium assets are worth considerably more than the current market price and I intend to work intensively with Jim Walchuck, Tournigan's President and Chief Operating Officer, to develop these assets and communicate their value to the market."
Corporate Matters
Tournigan is also pleased to announce that the non-brokered private placement with Sprott Asset Management Inc., announced August 23, has closed to raise net proceeds of $2.0 million. Terms are the same as discussed above, except no finder's fee or commission was payable. Any shares issued pursuant to this placement are subject to a four-month hold period expiry on December 31, 2005.
In other matters, the Company reports that, subject to approval of the TSX Venture Exchange and directors, it has granted 500,000 incentive stock options to certain directors and employees of the Company. The options have an exercise price of $0.40 per share and expire on August 31, 2010.
Tournigan Gold is focused on developing advanced projects in Europe - Curraghinalt (gold) in Northern Ireland, Kremnica (gold) in Slovakia and Jahodna (uranium/moly) in Slovakia. Tournigan's asset mix also includes a portfolio of uranium properties in Wyoming, as well as VMS projects in Slovakia and Northern Ireland.
TOURNIGAN GOLD CORPORATION
"Damien Reynolds"
Damien Reynolds, CEO
"James Walchuck"
James Walchuck, President and COO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("the U.S. Securities Act") or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
For further information please contact Damien Reynolds, CEO or Garry Stock, Executive VP at (604) 683-8320, or visit www.tournigan.com
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