Bellhaven Copper & Gold Inc.

Bellhaven Copper & Gold Inc.

June 03, 2013 07:01 ET

Bellhaven Implements Significant Cost-Saving Initiatives

Bellhaven's Cost Structure One of the Lowest Among Juniors Operating in Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 3, 2013) - Bellhaven Copper & Gold Inc. (TSX VENTURE:BHV) ("Bellhaven" or the "Company") is pleased to announce significant cost-saving initiatives to strengthen the Company's financial position. These initiatives will optimize the Company's financial resources by allowing Bellhaven to spend more on exploration at its La Garrucha gold-(copper) project and less on corporate overhead. Bellhaven now ranks towards the bottom with respect to compensation and fees paid to management/board of directors based on an internal survey of Canadian junior exploration companies operating in Colombia.

The new cost-savings initiatives include:

  • Closing of the Denver, Colorado office (Bellhaven's only corporate office is in Panama City and operations in Colombia are run from our field offices at La Mina and Fredonia);
  • Termination of the VP Exploration position (these responsibilities will be assumed by the Company's special advisor as well as the geologic staff at La Mina project, Colombia);
  • Salary reductions of 20-25% paid to key personnel such as the COO/President and La Mina Project Geologist (Bellhaven's CEO is already one of the lowest paid CEOs);
  • Termination of two geologists from the staff at La Mina project, Colombia;
  • Fee reductions of 25% paid to independent directors (management serving on the board of directors receive no fees), and
  • The Company issued incentive stock options to management and board members as disposition for the reduction in salaries/fees paid and to foster an "owner" mentality among its workers (see press release dated May 16, 2013).

Julio Benedetti, Bellhaven's CEO and Chairman, commented as follows:

"We believe these cost-saving initiatives are prudent at this time. Although it was difficult to make these reductions, it is in the best interest of the Company to spend more of its funds on exploration so as to grow the Company's asset base."

"As part of the cost-saving initiative, the Company conducted an internal review of salaries/fees paid to senior management and board members of several other pre-production Canadian junior exploration companies operating in Colombia. In each instance we found that the cash compensation paid by these other companies was higher than that paid by Bellhaven. As a result of the salary reductions, Bellhaven's management team and board of directors understand that the path to greater rewards is through their stock options and a higher share price. In this way we are very much aligned with our investors."

About Bellhaven

Bellhaven Copper & Gold Inc. is a Canadian-listed (TSX VENTURE:BHV) exploration company exploring for gold and copper in Panama and Colombia. The Company's goal is to be a leader in gold and copper development in Panama and Colombia. Bellhaven focuses on discovery, acquisition, and development of high-quality resources in a safe and responsible manner for the benefit of all of its stakeholders.

The Company's flagship project is La Mina, a series of porphyry gold-(copper) deposits located in the Middle Cauca belt of Colombia. The total La Mina resource now includes 1.6 Moz gold and 419 million pounds of copper (or 2.55 Moz gold equivalent) contained in 79.9 million tonnes averaging 0.62 g/t Au, 0.24% Cu, or a gold equivalent grade of 1.0 g/t (based on a 0.30 g/t Au cutoff grade). The average grade of 1.0 g/t gold equivalent makes La Mina one of the highest grade gold-(copper) porphyry deposits in the Americas. The Company is currently seeking to develop and grow these resources through mine development and ongoing exploration of the La Mina and La Garrucha concessions. For more information regarding Bellhaven, please visit our website at

On behalf of the board of directors,

Julio Benedetti, CEO & Chairman of the Board of Directors


Forward-Looking Statements

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Gold equivalent grades have been calculated using the following formula: AuEq = Au(g/t) + [Cu(%)} x {%Recoverable Cu / %Recoverable Au} x {Net Cu Price/Net Au Price} x {%Payable Cu / %Payable Au x 22.0462 x 31.1035]. Metal recoveries are estimates based on metallurgical results announced in Bellhaven's news release dated Nov. 15, 2011. Net metal prices for gold and copper are the long-term forward-curve metal price minus refining charge. Metal prices based on the long-term forward curve are as of May 8, 2013 (US$1482 for gold and $3.40/lb for copper). Metal refinery charges and % payable metal by the smelter are estimates based on third-party consultants. Metal prices, refinery charges and % payable metal are not constant and are subject to change. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.

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