PANAMA CITY, Oct. 4 /CNW/ -- Bellhaven Copper & Gold, Inc. (TSX-Venture:
BHV) ("Bellhaven" or the "Company") is pleased to announce that it has signed
a Definitive Agreement ("DA") and a Letter of Intent (LOI) which combined
entitle the company to acquire a 100% interest in the Cerro Quema Gold Project
-- a permitted exploitation concession located on Panama's Azuero Peninsula
just 8 km from Bellhaven's existing Azuero property package. The total
purchase price of the project is USD$10.4 million payable over 5 years, is
equivalent to USD$23 per "measured and indicated" ounce.
A positive Feasibility Study was completed by RNC Gold Inc., a previous
owner, in November 2002 for a heap leach operation, the results can be viewed
on SEDAR filed on June 12, 2003. The project, has also been the subject of an
updated pit study, as well as an update of CAPEX and OPEX costs done by AMEC
in November 2006.
Larry Abraham, Bellhaven's Chairman of the Board, had this to say at
"The terms of this acquisition are highly favorable (USD$23/measured and
indicated ounce) to Bellhaven and represent a very significant development for
the company. Additionally, Cerro Quema greatly enhances Bellhaven's existing
presence on the Azuero Peninsula (already in excess of 57,000 hectares) in the
form of greater exploration potential. "
The below is a breakdown of the mineral resources at Cerro Quema:
Cut-off grade Tonnes Grade Ozs
Measured 0.3 8,611,500 1.01 278,400
Indicated 0.3 6,529,400 0.82 173,000
Total 15,140,900 0.93 451,400
*Source: "Cerro Quema Concession, Republic of Panama General Update and
Revised Mineral Reserve and Resource Estimates As of January 1, 2004, An
addendum To the Mineral Reserve Audit Quema Project Prepared by Chlumsky,
Armbrust and Meyer, LLC June 3, 2003, Readdressed to Glencairn Gold
Corporation May 4, 2007.
To obtain the 100% interest in the Cerro Quema Gold Project, Bellhaven
has signed a Definitive Agreement ("DA") with Carena Equities Corp. ("Carena")
to acquire 40%, and a Letter of Intent ("LOI") with Glencairn Gold Corp. (TSX:
GGG) ("Glencairn") to acquire the remaining 60%.
Mr. Julio Benedetti, Bellhaven's President and CEO, is also the President
of Carena Equities as well as a shareholder of its parent company-making this
a "non-arms length" transaction. According to the terms of the DA with
Carena, Bellhaven will pay USD$4.4 million over the next 5 years according to
the following schedule:
Amount Payment date
USD$50,000 at signing of the agreement
USD$200,000 Jan. 15, 2008
USD$250,000 Jun. 30, 2008
USD$250,000 Dec. 30, 2008
USD$250,000 Jun. 30, 2009
USD$1,133,333 Jun. 30, 2010
USD$1,133,333 Jun. 30, 2011
USD$1,133,334 Jun. 30, 2012
According to the terms of the LOI with Glencairn, Bellhaven will pay an
aggregate USD$6 million to Glencairn over the next 15 months to acquire
Glencairn's 60% interest in the Cerro Quema property. The funds will be paid
according to the following schedule:
Amount Payment date
USD$100,000 Upon acceptance of the offer
USD$400,000 Upon closing of the agreement
USD$2,500,000 Within thirty days of closing of the
USD$1,000,000 Jun. 30, 2008
USD$2,000,000 Dec. 31, 2008
In addition to the above outlined payments, Bellhaven will take over 100%
of the obligations related to development costs of the project and future
production. Production obligations include a 2% NSR to the government of
Panama, a 2% NSR to CEMSA (a Panamanian corporation and the initial vendor of
the property) and a 9% NPI to Campbell Resources Inc.
Bellhaven intends to fund the property payments by a combination of
equity offering and debt financing.
This press release has been prepared under the supervision of Michael
Druecker, Ph.D., P.Geo., who serves as the qualified person for this project
under National Instrument 43-101.
Bellhaven Copper & Gold Inc. is a Panama-based mineral exploration
company with a portfolio of gold and copper properties in the Republic of
Panama. The company has issued 23,583,101 shares and has no debt. For more
information, please visit the web site at http://www.bellhavencg.com or call
Miguel Villahermosa at toll free 1-866-599-5930.
On behalf of the board of directors,
Julio C. Benedetti, President, CEO
BELLHAVEN COPPER AND GOLD, INC.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Additionally, this document may contain certain forward-looking statements
which involve known and unknown risks, delays, and uncertainties not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance or
achievements implied by these forward looking statements.
For further information:
For further information: Corporate, Julio Benedetti, +1-507-226-3967,
or, Investor Relations, Miguel Villahermosa, 1-866-599-5930, both of
Bellhaven Copper & Gold, Inc. Web Site: http://www.bellhavencg.com