VANCOUVER, April 10, 2014 /CNW/ - Gold Bullion Development Corp. (TSXV:
GBB) (OTCPINK: GBBFF) (the "Company" or "Gold Bullion") announces that
it has signed a Memorandum of Understanding ("MOU") with IAMGOLD
Corporation ("IMG") dated April 8, 2014 with respect to IMG processing
ore emanating from the Granada mine site at its Westwood Mill. After
appropriate due diligence, Management has determined IAMGOLD
Corporation is the best-positioned local mill facility to process the
mineralized material from Granada. In summary, its proximity provides
the most cost effective and economic option for the Company due to the
short hauling distance from the Granada mine site.
The subject-mineralized material is to be mined from the near surface
drill indicated gold resource identified in the Extend LONG Bars Zone.
At this stage of property development, the Company is targeting a total
of 500,000 to 600,000 tonnes of mineralized material for processing
over a three-year period. The transaction terms outlined in the MOU are
non-binding on the parties and the MOU is expected to be superseded by
a definitive milling agreement to be signed between the parties no
later than June 30th, 2014.
Memorandum of Understanding
Under the proposed terms of the MOU, IMG anticipates milling between
500,000 to 600,000 tonnes of gold mineralized material for Gold Bullion
or 150,000 to 200,000 tonnes on an annualized basis. Management has set
out the initial terms of the milling agreement at three years with the
subject-mineralized material to be milled in batches. It is expected
typical batch size will range from 35,000 to 50,000 tonnes with each
batch of material to be processed consecutively as one complete batch.
Processing will take place on a schedule of one batch every three
months. Once each batch of ore has been processed, settlement to Gold
Bullion is to be made in the form of recovered precious metals that
will be deposited to Gold Bullion metal accounts at the refiners'
The milling agreement will have an Evergreen clause that will renew the
agreement automatically for an additional three years upon completion
of this first agreement unless either party notifies the other in
writing otherwise. This written notice must be with 120 days advance
notice prior to the end of this initial term. The milling agreement can
also be terminated earlier for convenience or based on other changes in
circumstances, again by either party. Detailed specifics of the milling
agreement will be forthcoming when finalized by both parties.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural
resource company focusing on the exploration and development of its
Granada Property near Rouyn-Noranda, Québec, and its high grade Castle
Silver Mine in Gowganda, Ontario. Additional information on the
Company's Granada gold property is available by visiting the website at
www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer
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.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements.
SOURCE: Gold Bullion Development Corp.
For further information:
Frank J. Basa, P. Eng., President and CEO at 1-514-397-4000.