Uragold Bay Resources Inc.

Uragold Bay Resources Inc.

July 13, 2010 12:27 ET

Uragold Adds Four Claims to Its Beauce Placer Gold Property Located in St-Simon-Les-Mines

MONTREAL, QUEBEC--(Marketwire - July 13, 2010) - Uragold Bay Resources Inc. (Uragold) (TSX VENTURE:UBR) is pleased to announce that it has signed a letter of intent with a private vendor regarding the acquisition of 100% interest in four claims located in Saint-Simon-les-Mines, Quebec. The acquired claims expand the Beauce Placer Gold property to the northeast. This will add 1,700 meters to the 550 meters of un-mined paleoplacer gold channel.

Uragold will modify the recently announced work program of sampling and trial mining the Beauce Placer Gold tailings project to include a drilling campaign to upgrade historical gold deposits to 43-101 standards. The Company will provide an updated work program for the property in the near future. 

Material terms of the agreement are as follows (all amounts are expressed in Canadian dollars). In order to acquire its interest in the claims, the Company shall make the following payments to the vendor.

The Vendor agrees to grant Uragold the exclusive and irrevocable right to earn a one-hundred per cent (100%) interest in the Claims, in consideration of 1,866,000 common treasury shares of the Company plus a cash payment of $8,000.00

The transaction is made with a party that is non-related to the Corporation. The letter of intention is conditional to the approval of the Board of Directors of Uragold and the transaction is subject to approval by regulatory authorities. Further to the acquisition and its approval, the parties will proceed with the signature of a formal agreement and the titles of the claims will be transferred to the Corporation.

On other corporate subject:

Uragold Bay Resources is pleased to announce that its Board of Directors has approved the issuance of 1,408,165 common shares at the deemed price of $0.05 per share to settle outstanding debts of $70,408.24 due for services rendered to service providers of the Corporation. This settlement is subject to the approval of the TSX Venture Exchange.

Furthermore, as previously announced on March 24, 2010, the Corporation has settled the debt of $87,703.88 by issuing to the service provider 1,750,000 common shares.

About Uragold Bay Resources Inc.

Uragold Bay Resources is a junior exploration company trading on the TSX Venture Exchange under the symbol UBR. Uragold's business model focuses on developing low-cost gold mining operations while exploring on core properties that hold the potential of discovering blue sky gold deposits.

Uragold is a top claims holder in Southern Quebec's Appalachian belt. The properties benefit from extensive historical exploration work and from well-established infrastructure thereby helping to reduce exploration risks.

Contact Information

  • Bernard J. Tourillon
    Chairman and CEO
    Toll-free: 1-888-666-3431
    Patrick Levasseur
    President and COO
    Toll-free: 1-888-666-3431