18-Dec-2014
BCGold Corp. Closes First Tranche of Private Placement
read pdf
BCGOLD CORP. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Vancouver, British Columbia, December 18, 2014 (TSX-V: BCG) - BCGold Corp. ("BCGold" or the "Company") is pleased to announce that it has closed the first tranche of its private placement previously announced on October 2, 2014. The Company has raised $121,720 through the issuance of 6,086,000 units ("Units") priced at $0.02 per Unit. Each Unit comprises one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.05 per share for up to two years after the date of issuance. The Company paid finder's fees of $7,000 and issued 350,000 finder warrants, each of which entitle the holder to purchase one BCGold common share at a price of $0.05 per share for up to two years after the date of issuance. All securities are subject to a four month hold period expiring April 19, 2015.
Use of Proceeds
Proceeds from this financing will be used to continue marketing BCGold's Engineer Mine development and gold concentrate production opportunity, and for general working capital purposes.
About BCGold
BCGold's primary asset is the 100% owned, historic high-grade gold Engineer Mine property, situated in Northwestern B.C. At Engineer Mine, BCGold is uniquely positioned and fully permitted to mine and mill accessible high-grade gold mineralization. In 2011 the Company successfully mined and milled 246 tonnes of vein material from the Engineer Vein on Level 5 and produced and monetized 800 kg of gravity concentrate for $US107,000. The bulk sampling program identified 2 accessible high-grade gold exploration targets on the Engineer Vein between 5 and 8 Levels, which are believed to contain between 12,000 to 17,000 ounces of gold, grading between 30 g/t to 60 g/t gold, in 8,000 to 14,000 tonnes of vein material.(*) Mine de-watering, geological mapping and panel sampling of production drifts on 6 and 7 Level in 2012 confirmed the depth extension of these two exploration targets, and re-established a third that was cut off by a dyke on 5 Level.
(*) The potential quality and grade of this exploration target is conceptual in nature, as there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
BCGold has an internal study that supports the premise to produce 7,600 ounces of gold over 3 summer seasons at Engineer Mine. The proposal is cash flow positive after 1 year with a maximum drawdown of $1.4M.(**) Partial proceeds would provide for continued exploration for a +1 million ounce bulk tonnage gold deposit, believed to exist on the property. The Company is aggressively sourcing a qualified partner to finance this venture.
(**) Readers are cautioned that the Company has not completed a pre-feasibility or feasibility study which establishes mineral reserves with demonstrated economic and technical viability. Further, the Company cautions readers that any potential production may not be economically feasible and historically projects taken to production without establishing reserves through a feasibility study have a much higher risk of economic or technical failure.
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.
BCGOLD CORP. (TSX-V: BCG)
Suite 520, 800 West Pender Street, Vancouver, BCV6C 2V6
Telephone: (604) 681-2626 Fax: (604) 646-8088
The Company has recently consolidated its land position at Engineer Mine, acquiring key claims believed to overlay the source area for the Engineer Mine gold mineralizing system. The Company's strategy at Engineer Mine is to focus exploration on an economic epithermal 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
President & CEO
Tel: 604-697-2401 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.