AMN - BURKINA FASO: Nexus to extend land package

Nexus Gold Corp has entered a letter of intent (LoI) with BELEMYIDA SA enabling Nexus to acquire the right to earn up to 100% in the Rakounga gold property in Burkina Faso. The 250sqkm Rakounga property is contiguous to the company's Bouboulou gold concession.

It borders Bouboulou on the west and south sides and hosts the Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend.

The LoI provides Nexus with an option to acquire a 90% interest in the property, in consideration for cash payments of US$400,000 and the issuance of 575,000 common shares of Nexus, over a period of three years.

Following the acquisition of a 90% interest, Nexus will have the option to acquire the remaining 10% through a cash payment of US$1 million with a 1% net smelter return royalty remaining with BELEMYIDA.

"This is a substantial addition to the land package at Bouboulou, effectively making the project almost 300sqkm in size. The acquisition allows us to follow the Bouboulou 2 and Pelatanga-Rawema trends to the southwest," said Nexus president and CEO Peter Berdusco. "This addition is important when you consider how this might influence the goal of establishing a resource at Bouboulou.

"There is significant artisanal activity in this new area which indicates gold mineralisation continues along the established trends for some distance. Our exploration programs will determine to what extent and obviously at what economic level, but we are excited at the potential value this strategic addition brings to the company's growing portfolio. We are looking forward to executing the definitive agreement in the coming weeks," he said.

The main Bouboulou concession covers an area of 38.3sqkm and is approximately 100km north by northwest of the capital city of Ouagadougou. Exploration on the permit area has been conducted by Boliden, Riverstone Resources and Roxgold Inc.

www.nexusgoldcorp.com