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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/03/12 -- Minco Gold Corporation (the "Company" or "Minco Gold") (TSX:MMM)(NYSE Amex:MGH)(FRANKFURT:MI5) provides the following update on the Tugurige Gold Project. On January 13, 2011, Minco Gold announced that it had, through its wholly owned subsidiary, Minco Mining (China) Co., Ltd. ("Minco China"), entered into a Joint Venture Agreement as amended (the "JV Agreement") with the 208 Exploration Team (the "208 Team"), a subsidiary of China National Nuclear Corporation, to acquire a 51% interest in the Tugurige Gold Project located in Inner Mongolia, China.
The 208 Team has not complied with certain of its obligations under the JV Agreement, including its obligation to set up a new entity (the "JV Co") and the transfer of its 100% interest in the Tugurige Gold Project to the JV Co. The Company is proactively engaged in resolving this dispute with the 208 Team. As a result, the Company has not commenced the commissioning of an NI 43-101 compliant resource estimate on the property.
Upon entering into the JV Agreement, Minco China advanced RMB 60 million (approximately C$9 million) to the Tugurige Gold Mine in the form of a secured short term loan guaranteed by the 208 Team. The funds have since been repaid to Minco China in full, with interest.
The JV Agreement remains subject to the approvals of various Chinese Government agencies. The Company is actively seeking these approvals, however, there is no assurance that such approvals will be forthcoming.
About Minco Gold
Minco Gold Corporation (TSX:MMM)(NYSE Amex:MGH)(FRANKFURT:MI5) is a Canadian mining company involved in the direct acquisition and development of high-grade, advanced stage gold properties. The Company owns an exploration property portfolio covering more than 1,000 square kilometres of mineral rights in China. For more information on Minco Gold and its properties, please visit the website at www.mincomining.ca.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Minco Gold Corporation with respect to its performance, business and future events including the those in respect of the Tugurige Gold Project. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, regulatory requirements and other risk factors listed from time to time in the Corporation's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Minco Gold Corporation does not undertake any obligation to release publicly any revisions to update any voluntary forward-looking statements.
Contacts:
Minco Gold Corporation
Ute Koessler
(604)-688-8002 or Toll Free: 1-888-288-8288
info@mincomining.ca
www.mincomining.ca