January 08, 2009 Dynasty Gold Re-Assigns Interest in Qi-2 Development Agreement
Vancouver, Canada: Dynasty Gold Corp. (TSX-V: DYG) (FWB: D5G) (the "Company") announces that its wholly-owned subsidiary, Terrawest Minerals Inc. ("TMI"), has entered into an Assignment Agreement with Chimo Gold Corp., wherein Chimo will receive TMI's 70% interest in the Qi-2 Property, located on the Hatu property in Xinjiang Autonomous Region of Northwest China. The remaining 30% interest continues to be held by three Chinese-based companies.
Chimo has agreed to make a cash payment of US$100,000 and up to US$35,000 in transaction costs. An additional US$800,000 is payable to TMI in the event that Chimo re-assigns the 70% interest. TMI will retain a 2.75% net smelter return royalty.
In April of 2006, TMI entered into a Framework for Development Mining and Exploration Agreement at Qi-2 in which TMI retained a 70% interest in the Qi-2 Property. This agreement gave TMI the right to develop this resource. Under this new agreement, TMI has transferred 70% interest in Qi-2 resource to Chimo.
Chimo Gold Corp. is a privately held, Vancouver-based mining company. Chimo is lead by a management and technical team with many years of experience in mine development and production, including within China.
About Dynasty Gold Corp.
Dynasty Gold Corp. is a Canadian gold exploration and development company that is aggressively seeking out new opportunities.
