Blue Gold Mining Inc.
TSX VENTURE : BGX

Blue Gold Mining Inc.

August 08, 2012 17:56 ET

Blue Gold Receives Final Acceptance of Option Agreement for Ball Creek Gold-Copper Porphyry Project and Closes Paget Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) - Blue Gold Mining Inc. (TSX VENTURE:BGX) ("Blue Gold" or "the Company") announced today that it has received final acceptance from the TSX Venture Exchange of a definitive option agreement ("the Agreement") between Blue Gold and Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget"). Under the terms of the Agreement, Blue Gold has the option to earn up to a 65% interest in a 145 square kilometre portion of Paget's Ball Creek Project located in Northwestern British Columbia (collectively referred to as "Ball Creek" or the "Project").

Ball Creek hosts widespread outcropping gold and copper porphyry-style mineralization in multiple targets over a 25 square kilometre area. Blue Gold is currently drill-testing two large targets as part of a 5,000 metre diamond drilling program, as well as carrying out property-wide geophysical surveys (airborne magnetics and ground IP), geological mapping, and geochemical sampling. For further details on Ball Creek and the 2012 exploration program, see Blue Gold press release, July 19, 2012. Initial assays from drilling are pending and the results are anticipated to be ready for release in early September.

Pursuant to the Agreement, Blue Gold has also acquired 6,054,212 units of Paget at a price of $0.16 per unit for gross proceeds of $968,673.92. Each unit consists of one common share and one half of one common share purchase warrant. Each warrant is exercisable into one common share at a price of $0.30 per share for a period of 2 years from the date of issuance. All of the shares, and any shares issued upon exercise of the warrants, are subject to a regulatory hold period expiring December 9th, 2012. Blue Gold now holds 9.9% of Paget's outstanding common shares on a partially diluted basis and maintains a pre-emptive right to maintain its equity ownership position in Paget for a period of three years from the date of closing of the private placement. Additionally, Blue Gold received a right of first offer for any direct or indirect sale, transfer, option, joint venture or other transaction on any of the claims outside the project area that form part of Paget Mineral's Ball Creek Project.

The Company also reports that it has filed a National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") technical report entitled "2012 Technical Report on the Ball Creek Property" ("the Report"), dated July 5th, 2012, on SEDAR at http://www.sedar.com. The Report relates to the independent assessment of the merits of the Project and outlines a two-phase recommended exploration program. The Report was prepared by Darcy E. L. Baker, P. Geo and Henry J. Awmack, P. Eng. of Equity Exploration Consultants Ltd. who are both independent of the Company and are "Qualified Persons" within the meaning of National Instrument 43-101.

All technical information contained in this release has been reviewed and approved by Scott Heffernan, P. Geo., Vice-President - Exploration for Blue Gold and a "Qualified Person" within the meaning of National Instrument 43-101. Historic exploration work and drill assays completed by Paget Minerals have not been verified by Mr. Heffernan; however Paget Minerals has given him no reason to doubt their authenticity.

Further details on Blue Gold's activities can be found on the Company's website at www.bluegoldmining.com and on SEDAR at www.sedar.com.

This news release contains "forward-looking information" that is based on the Company's expectations, estimates and projections as of the dates which those statements were made. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.

Neither the 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.

Contact Information

  • Blue Gold Mining Inc.
    Mark O'Dea
    Chairman and CEO
    604-683-7790

    Blue Gold Mining Inc.
    Sean Tetzlaff
    Chief Financial Officer
    604-683-7790
    www.bluegoldmining.com