Couldnt get HC annoucement up, so l have pasted it in case...

Couldnt get HC annoucement up, so l have pasted it in case others (well the 4 of us) were unable to read it in full

AUSQUEST BUYS INTO WEST AFRICAN GOLD PROJECT:
SIGNIFICANT OPPORTUNITY IN EMERGING GOLD PROVINCE
Highlights:
? Incorporated Joint Venture established with Canadian company Etruscan
Resources over properties in SW Burkina Faso, West Africa
? AusQuest to acquire initial 51% interest with right to increase to 80% by funding
exploration activities
? At least eight prospects outlined for drilling from extensive geochemical sampling
undertaken by Etruscan (rock-chip assays up to 64g/t Au)
? Initial RC drilling planned to commence in late April. No previous drill testing of
gold anomalies has been undertaken
AusQuest Limited (ASX: AQD) (?AusQuest?) is pleased to announce that it has secured a
significant new gold exploration opportunity in a highly prospective greenstone belt east
of the town of Banfora in south-western Burkina Faso, West Africa, through an incorporated
joint venture with a wholly-owned subsidiary of Canadian-based Etruscan Resources Inc.
Under the agreement, AusQuest will acquire an initial 51% interest in a new joint venture
company which will control a combined 670km2 strategic tenement holding in this
relatively unexplored greenstone belt (see attached map)
The agreement provides AusQuest with entry to a highly prospective gold region of West
Africa and a ?head start to discovery? of potential gold resources, which is a key objective of
the Company.
Numerous multi-million ounce gold deposits occur within similar geological settings in
adjacent greenstone belts and within the adjoining countries of Ghana, Cote D?Ivoire, Mali
and Senegal. Burkina Faso is currently attracting an increased level of exploration activity,
including from Australian companies.
The greenstone belt east of Banfora (?Banfora Greenstone Belt?) is a relatively unexplored
area of Burkina Faso.
Extensive geochemical sampling programs undertaken by Etruscan within the Belt has
involved the collection and analysis of approximately 30,000 samples. This has outlined
extensive areas of anomalous gold (>50ppbAu) including at least eight prospects which are
ready for initial drill testing.
AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892
www.ausquest.com.au
Numerous rock-chip samples with gold values ranging from 1g/t Au up to 64g/t Au have
also been reported from these prospects suggesting primary gold in bedrock should be at
relatively shallow depths.
To date no drill testing of these gold anomalies has been undertaken and this will be the first
priority for the joint venture. A 10,000 metre Reverse Circulation (RC) drilling program,
which will provide the initial test of eight gold targets, is expected to commence in late April
pending rig availability and weather.
Details of Joint Venture arrangements
AusQuest has signed an agreement (?JV Agreement?) with Etruscan Resources Bermuda Ltd
(?Etruscan?), a wholly-owned subsidiary of Etruscan Resources Inc of Canada, to establish a
joint venture for the purpose of conducting exploration and evaluation of gold prospects
within their tenement holding in the Banfora Greenstone Belt (?Banfora Tenements?).
As part of the joint venture arrangements, E&A Resources Pty Ltd (?E&A?) has been
incorporated to hold the Banfora Tenements through a subsidiary company (Como?
Exploration SARL (?Como?)) based in Burkina Faso. Completion under the JV Agreement
("Completion") is expected to occur by 13th April 2010.
Under the terms of the JV Agreement:
? At Completion, Etruscan will transfer the entire issued share capital of Como?, the
holder of the Banfora Tenements, to E&A, and AusQuest will pay Etruscan US$1.0
million for an initial 51% interest in E&A. The remaining 49% interest in E&A will
be held by Etruscan.
? AusQuest must sole fund E&A with at least US$1.0 million in the first year and may
elect to sole fund E&A with a further US$1.0 million in the second year to increase its
equity interest in E&A to 60%. Funds provided to E&A will be utilised primarily for
the exploration and evaluation of the Banfora Tenements.
? If AusQuest fails to provide the full US$2.0 million funding within the two year time
frame, it will forfeit its entire interest in E&A.
? AusQuest may (at its election) sole fund E&A with a further US$5.0 million in the
subsequent four year period to increase its equity interest in E&A to 80%. A minimum
of US$1.0 million must be provided to E&A in each of the first 3 years. Funds
provided to E&A will be utilised primarily for further exploration and evaluation of
the Banfora Tenements.
? Should AusQuest fail to provide the full US$5.0 million to E&A, its equity interest in
E&A will remain at 60%.
? At the completion of sole funding by AusQuest, the parties will fund E&A's activities
in proportion to their respective equity interests in E&A. Any party that fails to
contribute to a call on shareholders will have its equity interest diluted on a
proportionate basis.
AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892
www.ausquest.com.au
? The parties are entitled to exercise such number of board and shareholder votes as are
proportionate to their respective equity interests in E&A. A number of matters (which
are customary for a transaction of this nature), such as alterations to E&A's capital
structure and the disposal of a material part of E&A's assets, will require the
unanimous approval of AusQuest and Etruscan.
AusQuest understands that Burkina Faso is a stable country with established Mining
Legislation. It notes that a number of foreign mining companies are successfully exploring
and operating mines in the country including Etruscan, which is operator of the Youga gold
mine.
The Board of AusQuest is very pleased to have concluded this agreement and looks forward
to reporting the commencement of drilling operations in Burkina Faso.
?This is an exciting new opportunity for AusQuest in a highly prospective yet largely
unexplored greenstone belt,? said AusQuest?s Managing Director, Graeme Drew.
?This investment in a project with substantial discovery potential in this region is consistent
with our core corporate objective and complements our existing portfolio of projects in
Australia.?