Trading Symbol: TSX: GGD
Shares Issued: 132,981,894
HALIFAX, Feb. 6, 2014 /CNW/ - GoGold Resources Inc. (TSX: GGD) ("GoGold" or the "Company") is pleased to announce that it has received US$15 million from Orion Mine Finance representing the second advance under the credit agreement dated September 27, 2013. Further details about the debt financing arrangement with Orion Mine Finance is contained in GoGold's news releases dated July 12, September 18 and September 30, 2013, which are available on SEDAR at www.sedar.com.
GoGold intends to use the net proceeds from the advance to complete the construction of its Parral tailings project in Chihuahua, Mexico with the intention to start production in May 2014 and for general working capital purposes.
The Parral Tailings Project is financed, permitted, and is currently under construction. Progress has been excellent, and the team in Mexico has provided timely updates and photographs which can be viewed on our corporate website. The heap leach pads are well underway, components of the processing facility are being fabricated and assembled, and the plan is to begin stacking ore in early April with the intention to start production in May 2014.
GoGold's San Diego exploration project adds additional upside in a growing pipeline of projects that have the potential for development over the next few years.
Parral Tailings Project
The project is in full construction and anticipated start-up is May 2014. Currently 130 personnel and contractors are on site and the number is expected to increase over the coming weeks. The earth works are well under way and work is 70% completed. The bulk of earthworks and civil work is scheduled to be completed by the end of February and structural steel fabrication and site erection is also proceeding well. February will be busy as more equipment arrives and additional contractors and staff are mobilized. Installation of liners for the heap leach pad will also commence in February. Additionally, power line installation and road modifications are also scheduled for February with completion expected in 8-10 weeks. Construction of footings and concrete work for the processing facility is expected to be completed soon. All the long lead items are ordered and under construction. See our web page www.gogoldresources.com for recent pictures.
Mr. Terry Coughlan, P.Geo, President and CEO of GoGold, is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects and has reviewed the scientific and technical information in this release.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the impact of the debt financing on GoGold and the Parral tailings project, the use of the net proceeds of the advance, and future plans and objectives of GoGold, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the ability to satisfy all conditions to funding of the second tranche under the credit agreement. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with the GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release and GoGold does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. No regulatory authority has approved or disapproved the adequacy or accuracy of this news release.
SOURCE: GoGold Resources Inc.
For further information:
Terence F. Coughlan, President and CEO,
Sean Tufford, Vice President, Corporate Development
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898