Palmarejo Silver and Gold Corporation

Palmarejo Silver and Gold Corporation

March 21, 2005 16:28 ET

Palmarejo Gold Corporation 'Formerly Named Bonita Capital Corporation', Bolnisi Gold NL and Palmarejo Acquisition Corporation Announce Completion of Business Combination Transaction


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PALMAREJO GOLD CORPORATION

TSX SYMBOL: PJO

MARCH 21, 2005 - 16:28 ET

Palmarejo Gold Corporation 'Formerly Named Bonita
Capital Corporation', Bolnisi Gold NL and Palmarejo
Acquisition Corporation Announce Completion of
Business Combination Transaction

TORONTO, ONTARIO--(CCNMatthews - March 21, 2005) - Palmarejo Gold
Corporation (TSX:PJO) (formerly named and listed as Bonita Capital
Corporation, a Canadian capital pool company) ("Palmarejo Gold"),
Bolnisi Gold NL ("Bolnisi") and Palmarejo Acquisition Corporation
("Palmarejo Acquireco") are pleased to announce the completion of the
previously announced business combination transaction (the "Business
Combination Transaction"), subject only to the receipt of final approval
of the TSX Venture Exchange (the "Exchange").

The Business Combination Transaction, which has been conditionally
approved by the Exchange, constitutes the "qualifying transaction" of
Palmarejo Gold for the purposes of the policies of the Exchange.

As previously announced, the Business Combination Transaction involved:
(1) the acquisition by Palmarejo Acquireco from the Bolnisi group of
companies of 100%of Bolnisi's interest in the Palmarejo gold-silver
project in the Temoris District of Chihuahua, Mexico (the "Palmarejo
Project") for 52,250,000 Palmarejo Acquireco common shares and
12,500,000 Palmarejo Acquireco warrants; and (2) the amalgamation of
Palmarejo Acquireco with a wholly-owned subsidiary of Palmarejo Gold
(the "Amalgamation"), pursuant to which holders of common shares and
warrants of Palmarejo Acquireco received, in exchange, one Palmarejo
Gold common share in exchange for each Palmarejo Acquireco common share
and one Palmarejo Gold warrant in exchange for each Palmarejo Acquireco
warrant.

The Board of Directors of Palmarejo Gold is now as follows: Norman
Seckold, James Crombie, Dudley Leitch, Kenneth Macdonald Phillips, Peter
Nightingale, David Fennell, Anthony Walsh and Bruce McLeod.

In connection with the Business Combination Transaction, funds from the
C$8,500,000 Palmarejo Acquireco subscription receipt financing completed
in December 2004 (the "Financing") were released from escrow, and the
holders of subscription receipts received Palmarejo Acquireco common
shares and warrants, which were automatically exchanged, upon the
Amalgamation, for Palmarejo Gold common shares and warrants. Sprott
Securities Inc., GMP Securities Ltd., Dundee Securities Corporation and
First Associates Investments Inc. acted as agents in connection with the
Financing.

Further information in respect of the Business Combination Transaction,
the Financing and the Palmarejo Project is included in the Filing
Statement of Bonita Capital Corporation dated March 14, 2005, available
through SEDAR (at www.sedar.com) under the listing of public documents
of "Bonita Capital Corporation".

The securities of Palmarejo Gold have not been and will not be
registered under the United States Securities Act of 1933, as amended,
or the securities laws of any state, and may not be offered or sold in
the United States or to any "US Person" (as defined in Regulation S
under the Securities Act of 1933) absent registration or an exemption
from registration.

The listing of the common shares of the company under the name Palmarejo
Gold is subject to the company fulfilling the final requirements of the
Exchange. The shares of the company will continue to be listed under the
name "Bonita Capital Corporation" until such time as the Exchange issues
its final approval by way of a Final Exchange Bulletin.

The Exchange has in no way passed upon the merits of the Business
Combination Transaction or the Financing and has neither approved nor
disapproved the contents of this press release.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
U.S.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Palmarejo Gold Corporation
    James Crombie
    President and Chief Executive Officer
    (450) 677-2585
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.