Bridgeport Ventures Inc.
TSX VENTURE : BPV

Bridgeport Ventures Inc.

November 11, 2009 09:20 ET

Bridgeport Acquires Rosario Copper-Gold Property in Chile and Announces Financing

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) -

NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRE SERVICES

Bridgeport Ventures Inc. (TSX VENTURE:BPV) ("Bridgeport") is pleased to announce that it has concluded an agreement to acquire all of the issued and outstanding shares of Rio Condor Resources S.A. ("Rio Condor"), a private Chilean corporation.

Rio Condor's principal asset is a right to acquire a 100% interest in the 242 Ha Rosario property located in Region III of Chile near the mining centre of Copiapo. Rio Condor also has the right to acquire the 82 Ha Tamara I Property and has signed letters of intent to acquire two additional properties contiguous to the Rosario property covering an aggregate of 237 hectares. Surface and underground mine workings, hydrothermal alteration, copper showings, and geochemical rock chip sampling, define a 1.4 km square area on the Rosario property that contains numerous distinct zones of Cu-Au mineralization. Acquisition of the two additional properties would increase by 70% the prospective area available to Bridgeport. Sociedad Legal Minera Rosario Una de la Sierra San Marcos, one of the vendors of the Rosario property is currently mining sulphide ore on the Rosario property from a spiral decline. Ore is being trucked for processing to the nearby ENAMI (Chilean Government) plant. Based on mill records provided by ENAMI, the weighted average grade of the sulphide ore delivered to its mill from the Rosario Property between October 21, 2007 and June 19, 2009 was 2.05% copper, 3.3 grams per ton of silver and 0.79 grams per ton gold. The Rosario property has never been drilled.

Bridgeport has commissioned Dr. Matthew Gray to prepare a technical report in respect of the Rosario property in compliance with National Instrument 43-101. Dr. Gray expressed the view that the property has the potential to host bulk mineable copper-gold deposits. Bridgeport plans to complete a Phase I exploration program on the Rosario property comprised of mapping and geophysical surveys followed by diamond drilling at an estimated aggregate cost of US$874,200. The program would be implemented under the supervision of Dr. Gray.

Under the terms of the agreement, Bridgeport will issue 1,200,000 common shares, and pay approximately US$2,000 to acquire Rio Condor. Bridgeport will also assume Rio Condor's obligation to pay US$10,400,000 over four years to acquire a 100% interest in the Rosario and Tamara I properties of which US$292,500 has been paid on closing and US $785,000 is payable at the end of the first year. The Rosario property is subject to a 2% net smelter royalty which may be purchased for US$2,000,000. The Tamara I property is subject to a 2% net smelter royalty which may be purchased for US$300,000. No further Chilean approvals are required to complete the purchase of Rio Condor or the Rosario and Tamara I properties. The letters of intent executed in respect of the two contiguous properties contemplate the purchase of such properties for aggregate consideration of US$2.4 million over four years. Additional commissions aggregating US$500,000 are payable by Rio Condor pursuant to its acquisition agreements.

Rio Condor and Bridgeport are arm's length parties. On completion of the purchase of Rio Condor, the principal of Rio Condor and two other service providers to Rio Condor will become employees and consultants of Bridgeport and will be granted an aggregate of 500,000 options under Bridgeport's stock option plan on closing of the acquisition.

Bridgeport also announces that Hugh Snyder has joined the board of directors of Bridgeport. He will act as Chairman. Mr. Snyder has been granted 200,000 options under Bridgeport's stock option plan which have a five year term and will be exercisable at the closing price of the Bridgeport common shares on November 11, 2009.

Bridgeport also announces a non-brokered private placement of units to raise a minimum of CDN$5 million and a maximum of CDN$11 million. Each unit will be priced at $1.00 and will consist of one common share and one common share purchase warrant entitling the holder to acquire one additional common share at $1.50 for three years. Eligible registrants will be paid a cash commission in connection with the financing equal to 6% of the proceeds they raise and will receive broker warrants entitling the holders to acquire such number of common shares of Bridgeport as is equal to 8% of the aggregate number of units sold in the Offering by such registrants, exercisable at a price of $1.00 per share, for a period of one year following the closing of the financing. Proceeds of the financing will be used to satisfy the first year payment required in connection with the acquisition of the Rosario and Tamara I properties, the initial exploration of the Rosario and Tamara I properties, the search for additional properties and for general corporate purposes. Up to 25% of the financing may be purchased by insiders of Bridgeport.

Completion of the acquisition and financing remains subject to the approval of the TSX Venture Exchange.

Mr. Matthew Gray, a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, has supervised the preparation of, and verified, the technical information in this release.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Bridgeport, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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.

Contact Information

  • Bridgeport Ventures Inc.
    Mr. Hugh Snyder
    Chairman
    (416) 350-2356