Bravo Venture Group Inc.
TSX VENTURE : BVG
FRANKFURT : B6I
August 24, 2007 16:57 ET
Bravo Announces Short Term Investment Status
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2007) - Bravo Venture Group (TSX VENTURE:BVG)(FRANKFURT:B6I) provides the following information with respect to the potential exposure on its cash position caused by the recent uncertainty in global credit markets. Bravo's cash and cash equivalent assets were approximately $CDN 10 million prior to August 21, 2007.
In July 2007, on the advice of HSBC Bank Canada, Bravo invested Cdn $1.2 million purchasing Selkirk Funding Trust's Canadian Asset backed commercial paper ("ABCP"). This represented approximately 12% of its present total cash and near cash position. The investment was rated "R-1 (High)" by Dominion Bond Rating Service (DBRS) and met Bravo's investment criteria policy. According to DBRS, Canada's major rating agency, commercial paper rated "R-1 (High)" is of the highest credit quality and indicates an entity possessing unquestioned ability to pay current liabilities as they fall due.
The Selkirk Funding Trust Note matured on August 21, 2007 but was not paid and remains outstanding. Bravo has received advice from Ernst and Young, acting on behalf of the largest four note holders, including National Bank of Canada, Caisse de Depot and Desjardins, that a consortium representing banks, asset providers and major investors have agreed in principle ("Interim Agreement") to take significant steps to re-establish normal operations in the market for Canadian ABCP. Bravo has received a request to agree in principle to the Interim Agreement, to commit to continue to roll its ABCP during the 60 day Standstill Period set out in the Interim Agreement and to refrain from taking any action that would precipitate a default by the issuer of its ABCP. Bravo currently is assessing its legal position with respect to the non payment and the request.
The balance of Bravo's cash position is held in cash at HSBC Bank Canada and in investments with HSBC Bank Canada in Bankers Acceptances.
Bravo believes its cash and cash equivalents balances, exclusive of the investment in the Selkirk Funding Trust note, approximating Cdn $8.8 million is more than sufficient to fund all budgeted exploration expenses for 2007-2008 on its Woewodski Island and Homestake Ridge properties where drilling exploration is currently underway and planned to continue through the balance of the 2007 exploration season. Additionally, Bravo is well positioned to fund the proposed exploration programs on its Silver Basin property, located near the Homestake Ridge property, and its extensive property position in Nevada's Battle Mountain-Eureka trend.
On behalf of the Board of Directors
Joseph A. Kizis Jr., Director, President, Bravo Venture Group Inc.
We seek safe harbor.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.