Brazilian Gold Corporation (TSXV: BGC) ("Brazilian Gold" or the "Company") is pleased to announce that the Company has completed the acquisition (the "Closing") of an additional 13.05% interest in Boa Vista Gold Inc. ("BVG") from D'Gold Mineral Ltda. ("D'Gold") after having received TSX Venture Exchange acceptance of the transaction (refer to the Company's new release dated April 26, 2013). The Company now holds a total 84.05% interest in BVG, which indirectly holds a 100% interest in the Boa Vista gold project (the "Boa Vista Project") subject to certain royalties. According to the Shareholders Agreement dated January 21, 2010, as amended, governing BVG, D'Gold is entitled to a 1.5% Net Smelter Return royalty, which can be purchased by Brazilian Gold for US$2,000,000 during a period commencing on the date of Closing and ending 48 months following the Closing.
In consideration of the 13.05% interest in BVG, the Company issued to D’Gold 375,000 common shares and will issue a further 1,125,000 common shares, for an aggregate of 1,500,000 common shares (the "Shares") to D'Gold over the next eighteen month period.
All Shares issued to D'Gold will be subject to a hold period imposed under applicable securities legislation which will expire four months after issuance of the Shares.
Boa Vista Project
The Boa Vista Project is a large property (12,889 Ha) located in the Tapajós region of northern Brazil with extensive historic alluvial and lateritic workings. The maiden mineral resource estimate on the VG1 deposit was completed shortly (16 months) after the discovery was reported in March 2011 (News Release 5/11 and 6/11). The mineral resource estimate outlined an inferred resource of 8.47 Mt grading 1.23 g/t gold (336,000 oz) at a 0.5 g/t cut-off and is based on shallow (<150 m depth) and limited drilling (15 holes in 3,007 m) and trenching (14 trenches in 2,229 m) of the eastern 600 m of an overall 2,000 m gold-in-soil anomaly.
About Brazilian Gold Corporation
BGC is a Canadian-based public company with a focus on the acquisition, exploration and development of gold properties located in northern Brazil. The Company has title to one of the largest mineral exploration land packages (3,753 km2) in the Tapajós and adjacent Alta Floresta gold provinces. The land package contains green fields to more advance stage projects including the Company's flagship São Jorge project. Rapid improvements to regional infrastructure continue to provide underlying support to Brazilian Gold's activities in northern Brazil.
For More Information
Brazilian Gold Corporation
Ian (John) Stalker, CEO and Director
Joanne Yan, President and Director
Tel: +1 604 602-8188
Ian (John) Stalker, CEO and Director
Joanne Yan, President and Director
Tel: +1 604 602-8188
