Great news for Cusac:
Cusac Gold Mines Ltd.: Cusac to Gain 100% Control of 1.04 Million Ounce Taurus Project
Vancouver, British Columbia CANADA, Mar 02, 2007 (M2 PRESSWIRE via COMTEX) -- Cusac Gold Mines Ltd. (CQC - TSX, CUSIF - OTCBB), David H. Brett, President, reports that the Company has reached an agreement in principle with American Bonanza Gold Corp. ("Bonanza") to acquire 100% of Bonanza's Taurus Project mineral claims near Cassiar, BC (the "Property"), which hosts a 724,000 ounce inferred gold resource, and which, when combined with Cusac's portion of the Taurus Project, comprises a 1.04 million ounce inferred gold resource.
Subject to TSX approval and the execution of a definitive agreement, the agreement in principle calls for Cusac to pay Bonanza 1.5 million shares of Cusac upon TSX approval, $6 million in cash through 4 payments of $1.5 million every 6 months commencing 6 months following TSX approval, an additional $3 million payable 60 days following the earlier of the receipt by Cusac of a feasibility study recommending commercial production on the Property and the date the Property is placed into commercial production, plus an additional 1.5 million shares within 24 months of approval.
The parties have further agreed that if the spot price of gold closes above US$800 per ounce for a period of 100 consecutive trading days within the 24 month period, then Cusac will pay Bonanza an additional $1 million within 24 months and an additional $1 million at feasibility or commencement of commercial production. In the event that Cusac completes the purchase of the Property within 12 months of approval, then total consideration paid by Cusac to Bonanza will be limited to $6 million within the 12 months, $3 million at feasibility, and the initial 1.5 million shares. The agreement in principle calls for Bonanza to not vote any shares received by Bonanza against management of Cusac.
The Taurus Project is contiguous with Cusac's Table Mountain Property and has been explored over the years by International Taurus Resources Inc. (now merged with Bonanza), Cyprus Canada, Inc., Cusac, and others. In 2006, a 43-101 compliant technical report prepared by Wardrop Engineering estimated an inferred gold resource of 1,040,000 ounces contained in 32,386,000 tons grading 1 gram/tonne based on over 370 drill holes located on claims owned by Cusac and Bonanza.
"I am thrilled that Cusac and American Bonanza have been able to reach an agreement that consolidates the Cassiar Gold Camp," said Cusac CEO David H. Brett. "Having the producing high-grade Table Mountain gold mine, Taurus II exploration project and the Taurus Project under Cusac's control will help us achieve our vision of developing the Cassiar region as premier gold producing area in BC and significantly growing our gold production in the future."
