Golden Band Resources Inc. Announces Suspension of Komis Mine Operations and Changes to its Term Debt Facility
SASKATOON, Feb. 26, 2013 /CNW/ - Golden Band Resources Inc. (Golden Band or Company) (TSXV: GBN) (OTCQX: GBRIF) wishes to clarify the activities taking place at our operations. As previously announced (see news release dated February 22, 2013) there have been changes to the Board of Directors. The new Board is in the process of reviewing operations and alternatives. It is the objective of the Board to put operations back into a profitable position.
A temporary halt of mining at the Komis deposit has been initiated to free up equipment and personnel to construct road access to the Golden Heart deposit. The detailed mine planning is to be completed and the deposit put into production as soon as possible. A thorough review of the Komis operation will be undertaken and it is expected that this deposit will be placed back into the mine schedule for future production.
Operations at the Roy Lloyd mine will continue unchanged. Our corporate objective of ensuring an adequate stockpile of ore at the Jolu Mill will be given the highest priority. These current changes in operations will impact production, with poured ounces now expected to be in the range of 25,000 to 26,000 ounces for the fiscal year ended April 30, 2013.
A longer-term objective of the Company remains the significant increase in our resource base through the continued exploration of our other deposits and exploration targets. A key component to this will be completing baseline environmental studies and the commencement of permitting procedures.
The Company will endeavor to keep our shareholders fully informed, on a timely basis, of our decisions and activities.
Golden Band also reports that Waterton Global Value, L.P. (Waterton) has assigned the term debt facility entered into between Golden Band and Waterton on August 3, 2012 and the related security package consisting of a first ranking charge over all assets of the Company to Procon Resources Inc. Procon Resources Inc. is a private company related to Golden Band's on-site contractor, Procon Mining Partnership.
About Golden Band
Golden Band Resources is a gold producer operating in the La Ronge gold belt in northern Saskatchewan and publicly listed on the TSX Venture exchange in Canada under the symbol GBN and is traded in the United States on the OTCQX under the symbol GBRIF. Commercial production was declared on April 1, 2011 and the Company has production from two mines, Roy Lloyd and Komis. Processing is at the centrally located Jolu mill, with a nominal capacity of 650 tonnes per day. The Company has been actively exploring the La Ronge Gold Belt since 1994 and has assembled a land package of 870 km2, including 13 known gold deposits and four former producing mines, being Jolu, Decade, Star Lake and Komis. The Company plans to undertake aggressive drill programs throughout the La Ronge Gold Project with the goal of significantly expanding the existing NI 43-101 gold resources that have been identified to date.
On behalf of the Board of Directors of Golden Band Resources Inc.,
"Ronald K. Netolitzky"
Ronald K. Netolitzky, Chairman
Caution Regarding Forward-Looking Information and Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the mine properties, estimates of production, costs of production, the sufficiency and availability of capital and financing and other future plans, objectives or expectations of Golden Band Resources Inc. (Company) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
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.
SOURCE: Golden Band Resources Inc.For further information:
Mark J. Thiel, VP, Interim President and CEO
Golden Band Resources Inc.
Phone: 306 385 7128
Fax: 306 955 0788