VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2012) - BCGold Corp. (or the "Company") (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) is pleased to announce that the Company has entered into a Letter Agreement with Kaiyue International Inc. ("Kaiyue") (TSX VENTURE:KYU.P) whereby, subject to regulatory approval, Kaiyue can earn up to a 70% interest in BCGold Corp.'s 100% controlled Toe Property, Yukon.
BCGold Corp. has granted Kaiyue the option to acquire a 60% interest in the Toe Property ("Property") by making $255,000 in cash payments, $1,900,000 in exploration expenditures and issuing 400,000 shares of Kaiyue to BCGold Corp. over a four year period. Kaiyue can earn an additional 10% interest in the Property by completing a feasibility study, for a total interest of up to 70%. In addition to regulatory approval, the Kaiyue option is subject to BCGold Corp. and Kaiyue entering into a definitive option and joint venture agreement on or before August 31, 2012.
The 1,600 hectare Toe Property is one of BCGold Corp.'s 16 Minto/Carmacks Copper Gold Properties (15,925 hectares) in Yukon, strategically located proximal and adjacent to Capstone Mining Corp.'s currently producing, high-grade copper-gold Minto Mine and Copper North Mining Corp.'s Carmacks Copper Project. BCGold Corp. is the largest land holder in the Carmacks Copper-Gold Belt, having spent approximately $4 million in exploration expenditures over the past 4 years and discovering 7 copper-gold mineralized zones.
The Toe Property is located 7 kilometers northwest of the Minto Mine and 255 kilometres northwest of Whitehorse, Yukon. The Toe Property is drill-ready and hosts a number of copper-gold soil anomalies and "Minto-type" geophysical targets. The Toe Property is subject to a 2.5% net smelter returns royalty interest held by BCGold Corp. and a third party.
BCGold Corp. also announces that BCGold Corp. and Pacific-Link Capital Inc. have mutually agreed to terminate the March 14, 2012 letter agreement regarding the Toe Property.
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 21% of the Company's outstanding shares and Kinross Gold Corporation holds 5%.
BCGold Corp. is unique in that it not only exposes investors to the prospect of discoveries, but is also positioned to offset exploration costs by forward selling gold concentrate recovered from on-site processing of bulk sample material at the Company's high-grade gold Engineer Mine property.
On behalf of the Board of Directors,
Brian P. Fowler, P. Geo., President & CEO
Some statements in this news release contain forward-looking information or forward-looking statements. These statements include, but are not limited to, statements with respect to future expenditures 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 and the timing and success of future exploration, development and production activities. 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.
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.