Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business Editors:
Dundee Precious Metals acquires 29% stake in Goldbelt
Resolute Sells 18.4 million Common Shares
TORONTO, Oct. 26 /CNW/ - Goldbelt Resources Ltd. (TSXV: GLD) In its press
release, Dundee Precious Metals announced a private transaction to acquire
18.4 million common shares of Goldbelt, or approximately 29% of the
outstanding common shares from Resolute Mining Ltd. at a price of Cdn$1.23 per
share. With its ownership, Dundee will become the largest single Goldbelt
shareholder with approximately 47% of the issued and outstanding shares, on an
undiluted basis. This transaction contemplates the total exercise by Resolute
of 4.7 million warrants to acquire common shares of Goldbelt for proceeds of
approximately $2.9 million.
Collin Ellison, President and Chief Executive Officer of Goldbelt stated,
"Dundee Precious Metals and Resolute Mining have both been significant
shareholders of Goldbelt for a number of years and Dundee has consistently
participated in Goldbelt's equity financings. Resolute has also assisted in
the ongoing development of the Company and has provided financing by the
exercise of share purchase warrants. Goldbelt appreciates the support which
both Dundee and Resolute have provided in the past and we are pleased that
Dundee's acquisition at a price in excess of the current market price
demonstrates the faith which Dundee has in Goldbelt and the Belahouro Project
in Burkina Faso."
GOLDBELT RESOURCES LTD.
Per: "Collin Ellison"
Collin Ellison, President and CEO
This news release may contain forward-looking statements within the
meaning of the "safe harbour" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to risks and
uncertainties and other factors that may cause Goldbelt's results to differ
materially from expectations. These include risks relating to market
fluctuations, investee performance and other risks. These forward-looking
statements speak only as of the date hereof. Goldbelt disclaims any intent or
obligation to update these forward-looking statements.
%SEDAR: 00004199E %CIK: 0001013785
/For further information: please visit the Company's website
www.goldbeltresources.com or contact Laura Sandilands, Investor Relations or
Collin Ellison, President and CEO at (416) 364-0557 or by email
lsandilands(at)goldbeltresources.com./
(GLDRF GLD.)
CO: Goldbelt Resources Ltd.
CNW 11:45e 26-OCT-06
