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/24-7PressRelease/ - June 17, 2005 - Following shareholder approval, Moto Goldmines Limited completed a merger with the Canadian-based King Products Inc and the merged entity is now listed on the Toronto Exchange (TSX:MGL) and has a new code on the Australian Stock Exchange (ASX:MOE).
"Already we've had considerable investor support in the North American market and this has given us the confidence to pursue our vision of maximising shareholder value through the discovery of substantial, high grade gold deposits in Central Africa," said Klaus Eckhof, Moto Goldmines Executive Director.
The company is conducting an extensive exploration programme in the Haut-Congo province in the north east of the Democratic Republic of Congo and has indicated resources of seven million tonnes at 2.7 grams per tonne gold for 600,000 ounces Au and inferred resources of 55.5Mt at 2.9 g/t Au for 5,210,000 ozs Au.
"Moto is now a wholly owned subsidiary of King providing the necessary corporate structure to provide ongoing funding to develop the Moto project," Mr Eckhof said.
The Democratic Republic of Congo has a long history of gold mining and was the world's fifth largest gold producer in the 1960's.
"While the region may be perceived as high political risk, we see a new dawn for the Congo as one of the last frontiers in modern exploration and mining and aim to operate at all times with a high social, environmental and ethical awareness," Mr Eckhof said.
Moto is undertaking an extensive drilling programme focused on identifying substantial gold resources in this under explored but highly prospective gold province.
MOTO GOLDMINES LIMITED
Â· Moto Goldmines Limited was previously known as Equs Ltd, which listed on the Australian Stock Exchange on 1 January 2001.
Â· The previous focus of Equs was in mineral exploration, investment and development of business-to-business opportunities via the Internet.
Â· The new focus of Moto is to explore and add value to gold deposits in the Moto Greenstone Belt located in the Democratic Republic of the Congo.
Â· Directors of Moto have a long tradition and experience of exploration and mining in Africa.
Â· They have well established contacts in the Congo, an outstanding knowledge of the region and are using modern exploration methods and standards to develop its potential.
Â· The Moto project involves the Borgakim area covering nearly 5,000 square kilometers.
Â· Moto has exercised exclusive rights to acquire an interest in the Southern Mining Licence (SML), including the historical mines of Gorumbwa and Durba, and the Kibal Resource Area.
Â· The Moto deposits are typically spectacular high grade ore bodies with a strong track record. For example, Agbarabo in the region produced 600,000 ounces of gold at an average of 39 grams per tonne and Gorumbwa produced 1.2 million ounces at 22 grams per tonne with over 1 million ounces of gold still remaining.
Â· Moto will manage all exploration and mining activities.
Â· Managing Director Klaus Eckhof arrived in Australia in 1988 to work for Mount Edon Gold Mines (Aust) Limited. His considerable experience since then in assessing mineral projects all over the world has culminated in several Australian public companies acquiring exploration properties in Africa, Asia and South America. In recent years he has managed his own geological consultancy company and has developed a global network of relationships with the major gold producers, resource financiers, brokers and investors.
For Further information: Klaus Eckhof 041-1148 209, Thomas Murrell, 8M Media and Communications 0417 - 984 996
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