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Under the terms of the MOU, Yukon Gold may acquire 75% of Minera for total consideration of US$19,915,000, of which US$14,275,000 will be by way of project financing to Minera and US$4,730,000 will be paid to the Company. From these monies, the Company is to pay US$2,050,000 to Carena Equities (“Carena”), a company controlled by Julio Benedetti, the President and CEO of Bellhaven, in respect of payments due in connection with the Company’s prior acquisition of a 40% interest in Minera. This payment, as agreed to with Carena, satisfies all the Company’s obligations in respect of such prior acquisition. The Company is also to pay a further US$1,950,000 to B2 Gold to retire a promissory note in that amount issued to B2 Gold in connection with the Company’s acquisition of the other 60% interest in Minera, as more particularly detailed in the Company’s news release of July 16, 2009.
At the closing of the transaction, the Company is also to be paid a further $75,000 as consideration for the cancellation of a 9% NPI in the Property retained by the Company.
Under the MOU, Yukon Gold has a 60 day due diligence period, during which it must make incremental non-refundable payments to the Company totalling US$400,000, which monies will be applied to the purchase price provided that closing of the transaction occurs on or before November 12, 2009.
On completion of the acquisition of the 75% interest, Yukon Gold will assume operatorship of the Property.
In commenting on the transaction, Julio Benedetti, President and CEO of the Company stated that:
“From the Company’s perspective we are very pleased with this MOU because:
1. it will enable the Cerro Quema gold deposit to be put into production within the expected timetable;
2. the Company will retain a 25% carried interest to production;
3. it dramatically reduces the current cash burn rate for the Company;
4. it secures the purchase payments and development/construction funding; and
5. it takes advantage of the favourable gold market prices.”
The Cerro Quema gold project is a fully licensed and permitted exploitation concession with an approved EIS and an approved Environmental Management Program which is ongoing. Community and social relations in the area are very strong with a positive project approval by the communities. Community and social programs are ongoing.
The Cerro Quema gold project is located on the Azuero Peninsula in the Los Santos Province of southwestern Panama, about 45 Kms southwest of the City of Chitre and approximately 190 Kms southwest of Panama City. The project is accessible by paved road to the company offices and then by a 7 km all weather road to the site. Cerro Quema contains a Measured and indicated Resources of 451,400 ounces of gold with an average grade of 0.93 g/t and a cutoff grade of 0.30 g/t.
Bellhaven Copper & Gold Inc. is a Panama-based mineral exploration and development company with a portfolio of gold and copper properties in the Republics of Panama and Colombia. The Company has 46,779,992 shares issued and outstanding. For more information, please visit the web site at www.bellhavencg.com or call Patrick Abraham in Panama at 011-507-340-9500.
On behalf of the board of directors,
Julio C. Benedetti, President, CEO
BELLHAVEN COPPER & GOLD, INC.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Corporate Contact: Investor Relations Contact:
Julio Benedetti Patrick Abraham
Int’l No: +507-226-3967 Int’l No: +507-340-9500
At the closing of the transaction, the Company is also to be paid a further $75,000 as consideration for the cancellation of a 9% NPI in the Property retained by the Company.
Under the MOU, Yukon Gold has a 60 day due diligence period, during which it must make incremental non-refundable payments to the Company totalling US$400,000, which monies will be applied to the purchase price provided that closing of the transaction occurs on or before November 12, 2009.
On completion of the acquisition of the 75% interest, Yukon Gold will assume operatorship of the Property.
In commenting on the transaction, Julio Benedetti, President and CEO of the Company stated that:
“From the Company’s perspective we are very pleased with this MOU because:
1. it will enable the Cerro Quema gold deposit to be put into production within the expected timetable;
2. the Company will retain a 25% carried interest to production;
3. it dramatically reduces the current cash burn rate for the Company;
4. it secures the purchase payments and development/construction funding; and
5. it takes advantage of the favourable gold market prices.”
The Cerro Quema gold project is a fully licensed and permitted exploitation concession with an approved EIS and an approved Environmental Management Program which is ongoing. Community and social relations in the area are very strong with a positive project approval by the communities. Community and social programs are ongoing.
The Cerro Quema gold project is located on the Azuero Peninsula in the Los Santos Province of southwestern Panama, about 45 Kms southwest of the City of Chitre and approximately 190 Kms southwest of Panama City. The project is accessible by paved road to the company offices and then by a 7 km all weather road to the site. Cerro Quema contains a Measured and indicated Resources of 451,400 ounces of gold with an average grade of 0.93 g/t and a cutoff grade of 0.30 g/t.
Bellhaven Copper & Gold Inc. is a Panama-based mineral exploration and development company with a portfolio of gold and copper properties in the Republics of Panama and Colombia. The Company has 46,779,992 shares issued and outstanding. For more information, please visit the web site at www.bellhavencg.com or call Patrick Abraham in Panama at 011-507-340-9500.
On behalf of the board of directors,
Julio C. Benedetti, President, CEO
BELLHAVEN COPPER & GOLD, INC.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Corporate Contact: Investor Relations Contact:
Julio Benedetti Patrick Abraham
Int’l No: +507-226-3967 Int’l No: +507-340-9500