Garrison Receives Construction Permit at Tovshiir, Announces Acquisition of New Exploration License and Termination of Third Tra

Garrison International Ltd. (TSX VENTURE:GAU) (the "Company" or "Garrison") is
pleased to announce that, further to the Company's plan to move the Tovshiir
gold project into production at the earliest possible date, the Company confirms
has received approval from the Mongolian government for construction of ore
processing facilities on the Tovshiir property. The Company has also applied to
the Mongolian government for a production permit, which is required prior to the
commencement of production.


About the Tovshiir Gold Property

Garrison's Tovshiir gold project consists of a 75% interest in six Mongolian
mineral-related licenses. The Company, through its wholly owned Mongolian
subsidiary, Garrison Asia LLC, purchased its interest in this project from Asia
Intercept Mongolia LLC ("AIM"). AIM retains a 25% interest in the project. Once
the Company has spent US$1,800,000 on exploration of this project, all further
expenditures are to be funded on a pro rata basis between Garrison and AIM.


The Tovshiir gold project lies about 550 km southwest of Ulaan Baatar. Present
on the Tovshiir property are gold quartz veins and stockworks, which are hosted
in the diorites and granodiorites of the Arvayhaar Ingneous complex. These veins
parallel a regional N-S sheer zone, pinching and swelling along strike and
depth. Garrison has completed a geophysical survey of the Tovshiir gold project.


Prior to the Company's acquisition of its interest in the Tovshiir gold project,
a Chinese-Mongolian joint venture operated a gold mine on the property. Although
no significant equipment was left on the site of the Tovshiir gold project, the
previous operator left behind a small open cut with exposed mineralization and
many large sample pits that could be used to define the near surface
mineralization. Ore grade was discovered remaining in the pits and open cut and
has been extended by the Company's diamond drill program.


Tovshiir Gold Property Update

During the past few months and in anticipation of receiving permits from the
Mongolian government, the Company has commenced construction to prepare the
Tovshiir property for production. Earthworks have been completed, and the
Company is building the concrete foundation and other supporting concrete
structures for the facility. The ball mill to be used at the Tovshiir property
is scheduled to be delivered to the site this quarter. A heated building on the
plant site is under construction and is expected to be completed in the 4th
quarter of 2008. The heated building will facilitate continued work at Tovshiir
during the coming winter. JPCM Ltd., an Australian quarry group, has been
selected as the contractor to undertake mining and to perform primary and
secondary crushing at the Tovshiir property.


Prior to the commencement of production, the Company must acquire additional
equipment, including a Knelson concentrator and tanks, and complete the tailings
dam. The Company estimates that an additional $1,000,000 will be required to be
expended on the Tovshiir property prior to commencement of production. Of the
$1,000,000 required, approximately $400,000 would be used to purchase and
install a lining for the tailings dam, $300,000 would be used to purchase the
Knelson concentrator and tanks, and $300,000 would be used as working capital.
Until the Tovshiir project is able to generate significant working capital for
the Company, it will also be necessary for the Company to raise additional
financing to fund its general, administrative and other expenses.


Management of the Company is pleased by the level of activity at the Tovshiir
property and is confident that, building upon the work that has been completed
at this site over the past few months and assuming the remaining financing can
be obtained, the Tovshiir property will be brought into production early in
2009.


Garrison is currently looking to secure private financing to complete the
process of bringing the Tovshiir gold project into production. Further to
discussions with AIM, management of Garrison anticipates that a portion of the
funds required would be contributed by AIM in order to preserve AIM's 25%
interest.


Purchase of Exploration Licence

The Company's wholly-owned subsidiary, Garrison Asia LLC, has entered into an
agreement with Bigerkhairkhan, a limited liability company registered under the
laws of Mongolia, to purchase exploration license 13839X for cash consideration
of US$350,000. Payment of US$315,000 of the purchase price has been made to
Bigerkhairkhan, with the balance of the purchase price to be paid in due course.
Title to this exploration license has been transferred to Garrison Asia LLC.
This exploration license covers property that is adjacent to the Tovshiir
property, providing the Company with the possibility of expanding its
exploration activities onto neighbouring additional land that may have
production potential.


Termination of Third Tranche of Private Placement

The Company is also announcing that, with the mutual consent of Asia Goldworks
Limited ("AGL"), the parties will not proceed with the third and final closing
of its previously announced private placement with AGL. As discussed in greater
detail further in this release, AGL has invested a total of $3,000,000 in the
Company (out of the total $5,000,000 AGL had committed to invest in the Company)
through two closings that occurred on March 27, 2008 and May 30, 2008.


The third and final closing, for gross proceeds of $2,000,000, was to occur
pursuant to a share purchase agreement that provided that AGL would invest an
aggregate of $5,000,000 in the Company by acquiring up to 50,000,000 common
shares units ("Units") of the Company in three closings. Pursuant to that
agreement, each Unit, priced at $0.10, was to consist of one common share and
one purchase warrant exercisable at a price of $0.12 for one common share of the
Company for 18 months from the date of issue. Further details of the share
purchase agreement may be found in the Company's press release dated March 18,
2008.


Two closings have occurred pursuant to the share purchase agreement between AGL
and the Company, and a total of $3,000,000 was invested by AGL in exchange for
30,000,000 Units. The Company received final acceptance from the TSX Venture
Exchange for the first and second closings of the private placement. In a press
release dated June 19, 2008, management of the Company advised that the third
closing would be postponed.


About the Company

Garrison is a junior mineral exploration company focused on acquiring and
developing advanced stage gold properties in Mongolia. For complete details on
Garrison International Ltd. and its partners, management encourages investors
and interested parties to view its public documents filed on SEDAR at
www.sedar.com.


For all Garrison International Ltd. investor relations needs, investors are
asked to visit the Garrison International IR Hub at
http://www.agoracom.com/ir/garrison where they can post questions and receive
answers within the same day, or simply review questions and answers posted by
other investors. Alternatively, investors are able to e-mail all questions and
correspondence to gau@agoracom.com where they can also request to be added to
the investor e-mail list to receive all future press releases and updates in
real time.


CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. All statements in this
news release, other than statements of historical fact, are forward-looking
statements that involve various risks and uncertainties, including, without
limitation, statements regarding the future plans and objectives of Garrison
International Ltd. There can be no assurance that such statements will prove to
be accurate. Actual results and future events could differ materially from those
anticipated in such statements. These and all subsequent written and oral
forward-looking statements are based on the estimates and opinions of management
on the dates they are made and are expressly qualified in their entirety by this
notice. Garrison International Ltd. assumes no obligation to update
forward-looking statements should circumstances or management's estimates or
opinions change.


Shares Outstanding - 97,738,057
Aguila Copper (TSXV:AGL)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024