Trading Symbol: TSX-V: IG
CALGARY, Sept. 18 /CNW/ - Infinito Gold Ltd. ("Infinito Gold" or the
"Company") is pleased to announce that it has signed an engagement letter
under which it has given BNP Paribas an exclusive mandate to act as lead
arranger of a $US 66 million debt financing facility to complete the
construction and start-up of Infinito Gold's 100% owned Crucitas Gold Mine
Project located in north central Costa Rica. The financing is subject to BNP
Paribas completing its due diligence process, which has commenced, and
settlement of the terms of the facility.
Infinito Gold is a gold exploration and development company based in
Calgary, Alberta, in the process of transitioning from junior explorer to gold
producer. The development of the Crucitas Gold Mine Project is underway in
Costa Rica with gold production scheduled to begin in late 2009. This
signifies a major step forward for Infinito Gold and its shareholders.
"We are pleased to be working with the BNP Paribas team to bring the
Crucitas Gold Mine Project into production," said John Morgan, President and
CEO of Infinito Gold. Steven Dean, the Chairman of Infinito Gold, said "The
combination of the proven financial capability of BNP Paribas coupled with the
quality project team currently at work in Costa Rica gives us great confidence
that this project will be developed in an environmentally and socially
responsible manner to the benefit of our shareholders, employees and local
On July 17, 2008 the Company announced the results of a feasibility study
on the Crucitas Gold Mine Project prepared by Micon International Limited. The
project economics set forth in this study are considered by the Company to be
robust due to a number of factors including a low strip ratio of 0.6 tonnes of
waste per tonne of ore, high gold recoveries averaging over 92 percent and a
relatively low initial capital cost of $US 66.2 million. The mine operating
costs are estimated to be below US$ 350 per ounce, net of silver credits. The
feasibility study may be found with the Company's filings at www.sedar.com.
The forgoing scientific and technical information has been prepared under the
supervision of Ian Ward P. Eng., a qualified person under NI 43-101, who is
independent of the Company.
Construction has been underway since June of this year and several
buildings have been completed on site along with access road improvements,
bridge installation and site preparation. Most of the large mill components
have been delivered to the site and the project is on schedule and on budget
for completion in late 2009.
The Company announced on August 29, 2008 that it had completed a
non-brokered private placement for an aggregate of $CDN 18 million with
Exploram Enterprises Ltd. and Auro Investments Ltd. which funds are
anticipated to supply the required funding for mine construction until the
financing with BNP Paribas can be completed.
BNPP is an AA+ rated world class financial institution with a full range
of product and distribution capabilities, including a dedicated group
specializing in providing project finance services to the energy, metals and
mining industries. A market leader, BNP Paribas ranked No.1 global Mandated
Lead Arranger in project finance by Thomson Financial in 2007.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release address future events and
conditions and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the statements. These factors include,
among others, the inherent risks involved in the exploration and development
of mineral properties, the uncertainties involved in interpreting drilling
results and other geological data, fluctuating metal prices, the possibility
of project cost overruns or unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future, the
possibility that all necessary governmental and regulatory approvals will not
be received, and the availability of a qualified workforce and third party
contractors necessary for the development and operation of a mine. The Company
undertakes no obligation to update these forward-looking information or
statements if circumstances or management's estimates or opinions should
change. The reader is cautioned not to place undue reliance on forward-looking
information or statements.
INFINITO GOLD LTD.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
For further information:
For further information: INFINITO GOLD LTD., 220, 1010 - 1St S.W.,
Calgary, Alberta, T2R 1K4, Telephone: (403) 444-5191