Barrick Gold and Augusta Group Join Bullfrog Gold Corp. in Nevada
Grand Junction, CO, Sept. 08, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Bullfrog Gold Corp. (BFGC:OTCQB; BFG:CSE; 11B:FSE) (“Bullfrog”, “BFGC” or the “Company”) announces
it hasenteredinto a binding term sheet to acquire rights to 1,500 acres adjoining the Company’s Bullfrog Gold Deposit (the “Acquisition Transaction”) from Barrick Gold Corporation
(“Barrick”) and a C$22 million financing to be completed by Augusta Investments Inc. (“Augusta”). Concurrently, Maryse Bélanger will be appointed President, CEO and Director of the
Company along with the appointment of Donald Taylor, Daniel Earle, and a Barrick nominee to the Company’s Board of Directors.
Highlights of the Transaction
- Barrick and Augusta Become New Cornerstone Shareholders - Barrick will own 15.9% and Augusta will own 31.9% of Bullfrog’s shares outstanding after closing of the Transaction calculated on an undiluted basis.
- Strengthened Board and Leadership Team- Augusta will assume management, including the appointment of Maryse Bélanger as CEO, and Board of the Company will be reconstituted.
- Increased Financial Strength- The Company will be well funded with over C$22 million in cash enabling it to advance exploration and expedite development of the Bullfrog project.
- Barrick Land Acquisition - The Company will acquire all of Barrick’s mining claims, historical resources, permits and water rights in the Bullfrog mine area (the “Barrick Lands”) adding approximately 1,500 acres to its current position of 5,250 acres, allowing for the backfilling of nearly all mine waste in the south part of the Bullfrog pit upon receipt of required regulatory approval, thereby substantially reducing environmental impacts and mining costs.
- Large, Open Resource: Current resources on the Company’s lands are summarized below:
|Pre-Transaction Resource Estimates|
|Tonnes||Gold||Gold Oz||Silver||Silver Oz|
|Total M & I||16.07||1.02||525.4||2.61||1,340|
|Independently estimated in 2017 Technical Report by Tetra Tech Inc., filed on Sedar in Canada|
|and based on a $1200 gold price, 0.36 g gold/t cutoff and 72% gold recovery|
Mineral remains open and the Company believes it extends under the additional Barrick lands being acquired.