Vancouver, British Columbia, September 25, 2012 (TSX-V: BCG and PINK SHEETS: BCGOF) - BCGold Corp. (or the "Company") is pleased to announce that it has vested its final 25% interest and has now acquired 100% ownership of the Engineer Mine property from Engineer Mining Corp. ("EMC"). BCGold Corp. has notified EMC that it has fulfilled all obligations under the option agreement dated January 16, 2007, including all subsequent amendments. 

Immediately following the acquisition, BCGold Corp. entered into a letter agreement with EMC to purchase the following items, subject to TSX Venture Exchange approval, for total consideration of $300,000 payable to EMC no later than May 15, 2013:

"This agreement consolidates the Company’s ownership of mineral rights, royalties and infrastructure at the Engineer Mine property. The Engineer Mine has excellent exploration upside and near-term production potential, with more than 5,500 m of underground development to provide access to seven high-grade gold veins and two potential bulk tonnage mineralized shear zones," states Brian P. Fowler, P.Geo., President and CEO of BCGold Corp. "Engineer Mine remains our primary focus and we are committed to maximizing shareholder value by continuing to advance the property through sustainable and deliberate exploration and development. We believe we can continue to selectively bulk sample high-grade vein material and produce a marketable gold-rich concentrate while we continue to explore for bulk tonnage, shear zone gold deposits."   

In order to obtain adequate financing to further explore and develop the Company’s projects, including the Engineer Mine property, BCGold Corp.’s directors deem it necessary to consolidate the Company’s share capital. BCGold Corp. was unsuccessful in filling a $500,000 private placement (announced July 10, 2012) priced at the practical minimum share price of $.05 per Unit in a prevailing weak venture capital market. The Company’s directors believe that locking up 100% ownership of the Engineer Mine property, mill, and royalties makes for a compelling and financeable investment opportunity, even more so when coupled with the tighter share structure (and anticipated multiple in share price) that results from a consolidation of share capital. 

BCGold Corp. is convening an Extraordinary Meeting on October 30th, 2012, at 11:00 am at its corporate office, where shareholders will be asked by means of an Ordinary Resolution to approve a Consolidation of the Company’s issued and outstanding common shares at a ratio of up to ten (10) to one (1). 

If the Consolidation is approved, the directors of the Company will have the authority to implement the Consolidation at the ratio of up to ten (10) to one (1) at any time and will be permitted, without further shareholder approval, to select a lower consolidation ratio if they deem it to be appropriate. On the date hereof the directors intend to implement the Consolidation as soon as practicable following the approval of the Consolidation by the shareholders and the TSX Venture Exchange. In addition, notwithstanding approval of the Consolidation by the shareholders, BCGold Corp.’s directors, in their sole discretion, may revoke the Ordinary Resolution and abandon the Consolidation without further approval, action by, or prior notice to shareholders.

The Company’s issued and outstanding common shares are currently 98,602,011. If the Consolidation were undertaken at the ratio of ten (10) to one (1), the issued and outstanding common shares would be approximately 9,860,201. The Company does not intend to change its name in concert with the Consolidation.

BCGold Corp. also announces that the financing announced on July 10, 2012 and closed (first tranche) on August 24, 2012 is now closed.

BCGold Corp. (TSX-V: BCG) is focused primarily on gold exploration and development in under-explored historic and emerging mining districts in British Columbia and Yukon. BCGold Corp. acquires and develops conceptual, early and mid-stage exploration opportunities and advances them towards resource development. Currently, institutional investors hold 17% of the Company’s outstanding shares and Kinross Gold Corporation holds 5%.

BCGold Corp.’s principal focus is the 100% owned historic Engineer Mine property and the adjoining Gold Hill property, which total 2,395 ha and are situated in northwestern British Columbia. Since 2007, the Company has incurred approximately $3.5 million in exploration and development expenditures on the properties. 

BCGold Corp. also owns 100% of 16 copper-gold properties situated proximal and adjacent to Capstone Mining’s Minto mine in Yukon and eight copper-gold porphyry properties in south-central British Columbia. The Company owns 50% and 51%, respectively, in the Voigtberg and Sickle-Sofia copper-gold porphyry properties situated in the Galore Creek and Toodoggone districts. 

 

On behalf of the Board of Directors, 

President & CEO

For further information please contact:

Brian P. Fowler

Tel: 604-697-2401

Email: [email protected]