Vancouver, British Columbia: Calibre Mining Corp. (TSX-V: CXB) (the “Company” or “Calibre”) is pleased to announce that B2Gold Corp (TSX:BTO) (“B2Gold”) has executed a Letter of Intent (“LOI”) with Calibre Mining for an option to acquire up to a 65% interest in the NEN Gold-Copper Property (“NEN Property”) located in the North Atlantic Autonomous Region (R.A.A.N) of Nicaragua, Central America. The NEN Gold-Copper Property is a strategic and district-scale land package of 70,976 hectares (710 sq km) of contiguous mining and exploration concessions covering the historic “Mining Triangle” of the Siuna-Rosita-Bonanza areas of northeast Nicaragua, with additional concessions under application (together the “NEN Property Concessions”). The “Mining Triangle” of Nicaragua is one of the most prolific mining districts in Central America where estimates of historical production total more than 5.0 million ounces of gold, 3.9 million ounces of silver, 158,000 tons of copper, and 106,000 tons of zinc1.
Robert Brown, President and CEO of Calibre stated: “We are delighted not only to have secured a commanding land position in one of the most prolific gold producing districts in Central America but also to have attracted a partner like B2Gold that has a significant exploration and development success track record. Nicaragua is a mine-friendly jurisdiction and, once the purchase from Yamana is completed, Calibre and B2Gold are planning an aggressive exploration program to advance the numerous high priority precious and base metal targets on the property”.
B2Gold will be entitled to acquire a 51% interest in the NEN Property by expending C$8 million on exploration and other work by July 1, 2012, of which C$2.5 million must have been expended by July 1, 2010. Upon B2Gold earning an interest in the Property, B2Gold and Calibre will be responsible for the pro rata share of expenditures, including the C$5.00 per ounce bonus payment that becomes due and owing to Yamana Gold Inc. pursuant to the agreement announced on May 26th 2009. B2Gold will have the option to acquire an additional 14% interest in a Selected Project Area (“Project Area”) as defined and agreed upon by both parties, within the NEN Property Boundary, for a total 65% Project Area interest by completing a preliminary feasibility study on that Project Area. The Letter of Intent is subject to definitive documentation and a due diligence site visit. Calibre will be operator of the work program in the first year of the agreement; B2Gold will have an option to assume operatorship afterwards.
The terms of the previously announced financing on June 8, 2009 have been amended. A syndicate led by Haywood Securities Inc. and including Canaccord Capital Inc. and Genuity Capital Markets (the “Agents”) have been engaged to sell C$6 million of subscription receipts of Calibre priced at C$0.15 per receipt. Each receipt will be convertible into one Unit which consists of one common share of the Company and one full purchase warrant on the completion of the acquisition of the NEN gold-copper project. Each whole warrant is exercisable into one common share of the Company at a price of C$0.20 over a 24 month exercise period. The securities will be subject to a four month hold period. The Company has also granted the Agents the option to solicit additional gross proceeds of up to CDN$1,050,000 exercisable 48 hours prior to closing. Net proceeds from the Offering will be used for the acquisition of the NEN Project, and for general corporate purposes, including working capital.
The financing will be subject to regulatory approval. The purchase of a 100% interest in Yamana’s NEN Project is subject to final legal due diligence, execution of definitive documentation, completion of the Offering and regulatory approval.
Calibre Mining Corp. is a TSX Venture Exchange listed company (TSX.V: CXB) that is focused on the acquisition, exploration and development of gold and copper deposits in North and Central America.
On Behalf of the Calibre Mining Corp Board of Directors
Signed “Robert Brown”
Robert D. Brown, B.Sc., MBA
President and CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The views and information expressed in this news release are those of Calibre’s management based on its due diligence to date and to its knowledge including the review of historic information obtained from internal company reports. No representations as to the accuracy of the information outlined in this news release have been made (nor should any be assumed to have been made) by any of the companies named herein.
Cautionary Note Regarding Forward Looking Statements
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, silver or copper, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Calibre Mining Corp. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
12003, Internal Report for RNC Gold Inc.