News Releases
21-Jul-2014
BCGold Corp. Signs US$1.7 Million Term Sheet to Produce Gold Concentrate at Engineer Mine Property
read pdfVancouver, British Columbia, July 21, 2014 (TSX-V: BCG) - BCGold Corp. ("BCGold" or the "Company") is pleased to announce that it has signed a non-binding term sheet for a US$1.7 million gold streaming agreement (the "Agreement" or the "Investment") with an established precious metals streaming company (the "Investor").
The Investment, subject to a 30 day due diligence period and TSX approval, will be in the form of a Metals Purchase Agreement (or "MPA") whereby, the Investor has the right to purchase 30% of the first 10,000 ounces of gold and silver, and 5% of the gold and silver respectively thereafter (the "Metal Stream") produced at BCGold’s Engineer Mine annually, at a fixed price per ounce of US$400, for the life of the Engineer Mine project, as currently defined. The gold prepayment is conditional upon BCGold raising a minimum of $US300,000 by way of equity financing.
Subject to satisfactory legal and technical due diligence, the entry into of a definitive agreement, and the completion of conditions to be contained in the definitive agreement, the US$1.7 million Metal Purchase Agreement is targeted to close by August 15th, 2014. Immediately thereafter, mine and mill equipment will be purchased and mobilized to site. Work crews will complete all necessary mine and mill upgrades and limited mining and milling will be conducted in September and October of this year. Mining and milling operations will be suspended due to winter conditions at the end of October and resumed in March, 2015.
This investment interest was arranged by Investor Stratum Resources Inc. (ISR) and Stratis Consultants Inc. (STRATIS) STRATIS, a private company with a specialty in small-scale mining and finance, developed BCGold’s Engineer Mine plan to provide for continued small-scale gold production from bulk sampling high-grade gold vein mineralization at Engineer Mine. BCGold anticipates paying finder’s fees to STRATIS, payable through the Investment and subject to prior approval of the TSX Venture Exchange.
BCGold Corp. owns a 100% interest in the Engineer Mine property with no underlying royalties. The Company holds all necessary operating permits to dewater the mine workings, and mine and mill up to 4,000 tonnes of bulk sample in 2014 . The Company will apply to increase the bulk sample tonnage permit on an as needed basis.
About Engineer Mine
Engineer Mine was a high-grade gold producer that came to peak production in the mid-1920s and ceased operation in the early 1930s. More than 560 kg (18,000 oz) of gold and 278 kg (8,950 oz) of silver were officially produced at realized grades exceeding 39 g/t Au and 20 g/t Ag, primarily from the Engineer and Double Decker veins on six of eight mine levels. There is more than 5,500 m of underground development in place, which provide access to seven high-grade gold veins and two bulk tonnage mineralized shear zones. Surface exploration work has shown there are 25 known veins on the property. All veins remain open at depth and little exploration has been conducted deeper than 200 m below surface.
BCGold Corp. has incurred $4.0 million in acquisition, exploration and development expenditures at the Engineer Mine since 2007. The Company’s work includes the definition of an NI43-101 Inferred Mineral Resource of 41,000 tonnes grading 19.0 g/t Au, representing remnant portions of the Engineer and Double Decker veins down to 8 Level (see news release dated March 4, 2011).
Paul Wojdak, P.Geo., Vice President of Exploration for BCGold and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.
About Investor Stratum Resources
Founded in 2013, ISR is a boutique consulting firm that provides financial and strategic advice to junior and mid-sized exploration and mining companies. ISR is a collaboration of independent trusted mining and investment banking professionals who through strategic alliances have come together to ensure junior and mid-sized companies receive the same level of expertise as their larger competitors.
About Stratis
STRATIS is a private consulting firm formed in 2013 to provide corporate development, asset discovery and independent investment and small scale mining advisory services. STRATIS focusses on junior exploration and mid-size mining companies with the goal of maximizing shareholder value in the most cost effective manner possible.
About BCGold
BCGold is a Vancouver-based junior resource company focused on copper and gold exploration in under-explored, historic and emerging mining districts in British Columbia and Yukon. The Company acquires and develops conceptual, early and mid-stage exploration opportunities and advances them towards resource development. BCGold has generated 27 early to mid-stage gold and copper-gold properties in British Columbia and Yukon.
BCGold’s primary gold asset is the 100% owned, historic high-grade gold Engineer Mine property, where the Company has defined a gold concentrate production opportunity through continued exploration, bulk sampling and on-site milling. The Company has recently consolidated its land position at Engineer Mine, acquiring key claims believed to partially overlay the source area for the Engineer Mine gold mineralizing system. The Company’s strategy at Engineer Mine is to focus exploration for an economic shear-hosted gold deposit and to continue efforts to secure a qualified partner to finance the gold concentrate production opportunity.
On behalf of the Board of Directors,
Brian P. Fowler, P. Geo.
President & CEO
For further information, please contact:
Brian P. Fowler
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, but are not limited to, statements with respect to contemplated financings, use of proceeds of financings, reorganizations and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing and completion of contemplated financings, the actual use of proceeds, receipt of regulatory approvals, the completion of reorganizations and the timing and success of future exploration, development and production activities. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of its mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.