Calibre Mining Corp.

Calibre Mining Corp.

July 22, 2009 09:00 ET

Calibre Mining Closes Purchase of 100% Interest in the NEN Gold-Copper Project, Nicaragua, and Closes Option Agreement With B2Gold Corp

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2009) - Calibre Mining Corp. (TSX VENTURE:CXB) (the "Company" or "Calibre") reports that further to its news release of May 26, 2009 the Company has closed the transaction to purchase an undivided 100% interest in the NEN Gold-Copper Project ("NEN Project") from Yamana Gold Inc. (TSX:YRI)(NYSE:AUY)(LSE:YAU) ("Yamana Gold") located in the North Atlantic Autonomous Region (R.A.A.N) of Nicaragua, Central America. The NEN Gold-Copper Property is a strategic and district-scale land package of 70,976 hectares (710 sq km) of mining and exploration concessions covering the historic "Mining Triangle" of the Siuna-Rosita-Bonanza areas of northeast Nicaragua. The "Mining Triangle" of Nicaragua is estimated to have historical production totalling more than 5 million ounces of gold, 4 million ounces of silver, 158,000 tons of copper, and 106,000 tons of zinc(1). Calibre purchased all of the issued and outstanding shares of Yamana Gold's wholly owned Nicaraguan subsidiary for consideration of C$7.0 Million by the issuance of 12.0 million common shares of Calibre and C$4.42 million cash.


Further to the news release dated June 23, 2009 announcing the signing of a Letter of Intent with B2Gold Corp (TSX:BTO), ("B2Gold"), Calibre is pleased to announce that Calibre and B2Gold have executed an option agreement whereby B2Gold will be entitled to acquire a 51% interest in the NEN Property by expending C$8 million on exploration and other work by July 1, 2012; of which C$2.5 million must have been expended by July 1, 2010. B2Gold has the option to acquire an additional 14% interest in a Designated Project Area ("Project Area") as defined and agreed upon by both parties, within the NEN Property Boundary, for a total 65% Project Area interest by completing a preliminary feasibility study on that Designated Project. Calibre will be the operator of the work program in the first year of the agreement; B2Gold will have an option to assume operatorship afterwards.

Robert Brown, President and CEO stated: "The acquisition of a commanding land position in one of the most prolific, yet underexplored, gold districts in Central America, is a first step in Calibre realizing a change in its strategic focus. Partnering with B2Gold will allow Calibre to rapidly assess and advance the numerous high priority gold and copper projects on the NEN Project, while leveraging B2Gold's experience as an operator in Nicaragua. Calibre is also very pleased to welcome Yamana Gold and Kinross Gold Corporation as major shareholders of the Company with holdings of 10.5% and 5.8% respectively."


Pursuant to the previously announced close of the Private Placement into Escrow (July 16th, 2009), the subscription receipts have been converted into units ("Units"). Each Unit consists of one common share of the Company and one full purchase warrant. Each whole warrant is exercisable into one common share of Calibre Mining at a price of C$0.20 over a 24 month exercise period. The securities are subject to a four month hold period. Haywood Securities Inc, Canaccord Capital Inc. and Genuity Capital Markets (the "Agents") have been paid a cash commission equal to 7% of the gross proceeds raised and have been granted agent's warrants equal to 7% of the number of Units issued as part of the financing. Each agent's warrant is exercisable for one common share for a period of 24 months from closing at a price of $0.20.


Yamana has filed an Early Warning Report dated July 22, 2009 advising of the company's holdings in Calibre pursuant to the requirements of applicable securities legislation.

As partial consideration for the transaction, Yamana acquired control and ownership of 12,000,000 common shares of Calibre based on a price of C$0.215 per share, representing in the aggregate, approximately 10.5% of the 114,088,416 issued and outstanding common shares of Calibre. In addition to the 12,000,000 common shares, Yamana also acquired a warrant to acquire an additional 5,000,000 common shares at an exercise price of C$0.50 per common share; and a warrant to acquire an additional 5,000,000 common shares at a an exercise price of C$1.00 per common share, both warrants expiring on July 21, 2014. The warrants will only be exercisable if Calibre delineates at least 2.5 million ounces of gold equivalent, NI 43-101 compliant, Measured and Indicated resources. Together with the 12,000,000 common shares, should the conditions to the exercise of the warrants be met and the warrants exercised in full, Yamana will hold approximately 17.7% or 22,000,000 of the issued and outstanding common shares of Calibre. Yamana's share acquisition was made for investment purposes only. Yamana may, in the future, acquire ownership and control over additional securities for investment purposes, but has no current intention to do so.

Calibre Mining Corp. is a TSX Venture Exchange listed company (TSX VENTURE:CXB) that is focused on the acquisition, exploration and development of gold and copper deposits in Central America.

Calibre Mining Corp.

Robert D. Brown, B.Sc., MBA, President and CEO

Cautionary Note Regarding Forward Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, silver or copper, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Calibre Mining Corp. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

(1) 2003, Internal Report for RNC Gold Inc.

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.

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