BCGold Corp. Announces 100% Ownership of High-Grade Engineer Gold Mine, Mill Purchase and Corporate Restructuring
Date : 09/25/2012 @ 8:50AM
BCGold Corp. (or the "Company") (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) 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:
-- the fully permitted 30-tonne-per-day gravity separation mill, a 931
Caterpillar crawler loader, a 10-tonne dump truck, and ancillary
equipment at Engineer Mine
-- the 30% Net Profits Interest Royalty on a high-grade gold shoot on the
Double Decker Vein between mine levels five and eight
-- the option to purchase the Engineer Mine property surface rights in
three equal annual payments over a three-year period commencing April
16, 2016, at a fair market value of no more than $500,000 (this item is
an amendment to a previous agreement with EMC)
"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."
Common Share Consolidation
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.
Private Placement
BCGold Corp. also announces that the financing announced on July 10, 2012 and
closed (first tranche) on August 24, 2012 is now closed.
About BCGold Corp.
BCGold Corp. (TSX VENTURE: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,
Brian P. Fowler, P. Geo., President & CEO
