TORONTO, ONTARIO - March 7, 2005 - Romios Gold Resources Inc. ("Romios") (TSX VENTURE:RG) is pleased to announce that it has acquired all of the issued and outstanding shares of Mclymont Mines Inc. ("MMI") in consideration for the issuance of 2,000,000 common shares and 500,000 warrants to purchase common shares at $0.20 until March 1, 2006 and at $0.25 until March 1, 2007. MMI has the right to acquire up to 75% interest in the Newmont Lake Property located approximately 30 kilometers southeast of Novagold Resources Galore Creek Project in Northwestern BC. The Newmont Lake Property is comprised of 80 claim units which have been held by Gulf International Minerals Ltd. ("Gulf") since 1986 and an additional 202 claim units which were staked during 2002 and 2004.
Pursuant to the terms of the agreement with Gulf dated January 25, 2004, MMI can earn a 50% interest in the Newmont Lake Property by issuing 250,000 shares and incurring $3,325,000.00 in exploration expenditures by October 1, 2007. After earning a 50% interest, Mclymont has the option of purchasing an additional 25% interest by paying Gulf $1,000,000 in cash or shares based on the ten day trading average price of the Company's shares. Pursuant to the terms of the acquisition of MMI, Romios has issued 250,000 shares to Gulf as partial consideration to earn the interest in the Newmont Lake Property.
As part of the acquisition of MMI, Carl von Einsiedel was appointed a director of Romios and Mr. Garth Kirkham was appointed Vice-President of Romios. In addition, Mr. von Einsiedel was granted 235,500 stock options and Garth Kirkham was granted 235,500 stock options all exercisable at $0.21 per share for 5 years.
The securities issued on this transaction are legended and restricted from trading until July 2, 2005.
The Newmont Lake Property includes an advanced stage gold, copper, silver prospect and a large track of adjoining ground that has potential to host additional mineralization. The claims form, an irregular staircase shaped block that covers a northeast oriented graben structure underlain by Late Triassic to Early Jurassic aged intrusives and volcanics believed to have potential for Galore Creek style mineralization. The advanced stage prospect (referred to as the "NW Zone") is located on the original Gulf claims near the western margin of the graben in the southern part of the subject property.
As a result of the acquisition of MMI, Carl von Einsedel, a director and shareholder of Romios currently holds or controls directly or indirectly 1,593,337 common shares of RGRI representing 7.96% of RGRI's outstanding capital plus 440,000 warrants to purchase common shares and 235,500 options to purchase common shares and has the ability to acquire 10.97% of Romios on a partially diluted basis after giving effect to the exercise of all of his warrants and options. Mr. von Einsiedel has advised Romios that he has acquired the common shares for investment purposes and has no immediate intention to either increase or decrease his holdings of Romios. Notwithstanding the foregoing, Mr. von Einsiedel has advised that he may decrease or increase his beneficial ownership, control, or direction over the common shares in the capital of Romios through market transaction, private placement agreements, other treasury issuances or otherwise.
For the purposes of the disclosure in this press release, Carl von Einsiedel, P.Geo., director of Romios effective March 01, 2005, is the Qualified Person ("QP") in accordance with NI 43-101.
The current outstanding capital of the Company is 20,003,435 common shares.
FOR FURTHER INFORMATION PLEASE CONTACT:
Romios Gold Resources Inc.
President and a director of Romios
(416) 218-9772 (FAX)
Romios Gold Resources Inc.
Carl von Einsiedel, P.Geo
Director of Romios