BCGold Corp. Acquires Central Yukon Gold Property
BCGold Corp. (TSX VENTURE:BCG) (or the "Company") is pleased to announce that it has signed an option agreement (the "Agreement") to acquire a 100% interest in the 4,500 ha Off-White Gold property (the "Property") in central Yukon. The Property is an early-stage gold discovery that was identified through BCGold Corp.'s 2011 Yukon generative exploration efforts targeting bulk-tonnage, intrusion-related gold deposits in easily accessed areas of Yukon. The Property is well situated along the Klondike Highway with year-around road access, 8 km west of McQuesten village and 340 km north of Whitehorse, Yukon.
Prospecting and test pitting by Mr. Robert Stirling (the "Vendor") along the banks of the Stewart River in the early 1990s identified placer gold deposits that subsequently produced 455 ounces of gold during a two year period. Recent microscopic studies of the recovered nuggets defined a sizable sub-population of coarse-grained, angular nuggets, which is highly suggestive that a nearby bedrock source exists for a significant component of the gold. The Property was staked over the presumed bedrock source of this coarse gold.
BCGold Corp. believes the source of the gold is related to an underlying, Tombstone-style intrusive-related gold system situated along the margin of the nearby, regional Tintina Fault, and the Property represents an excellent discovery-stage opportunity. The Company plans to conduct an expansive auger-soil geochemical program in 2012 to further delineate the bedrock source of the gold.
Agreement Terms
The Company agrees to make a $47,000 cash payment to the Vendor upon signing the Agreement, and to issue 3,000,000 BCGold Corp. common shares to the Vendor and incur $600,000 in exploration work on the Property, in stages and over a four year option period, to earn a 100% interest in the Property. The Company will issue 150,000 common shares upon signing the Agreement and agrees to incur $75,000 in exploration expenditures and issue an additional 300,000 common shares by the first anniversary of the Agreement.
The Vendor retains a 2% Net Smelter Royalty, which can be reduced to 1% for a $1 million cash payment. The Company agrees to make annual advanced royalty payments of $60,000 commencing on the seventh anniversary of the Agreement.
All terms and conditions of the Agreement are subject to TSX Venture Exchange approval.
About BCGold Corp.
BCGold Corp. (TSX VENTURE:BCG) is a Vancouver-based junior resource company focused on copper and gold exploration and development 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 by using internal expertise, engaging preferred joint venture partners, and creating strategic alliances with major exploration and mining companies. Currently, institutional investors hold 21% of the Company's outstanding shares and Kinross Gold Corporation holds 7%.
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