Bullfrog Gold Corp. Signs Definitive Agreements with Barrick and Augusta
October 13 2020 - 8:00AM
via NewMediaWire -- Bullfrog Gold Corp. (BFGC:OTCQB; BFG:CSE;
11B:FSE) (“
Bullfrog”, “
BFGC” or
the “
Company”) announces it has entered
into definitive agreements (“
Definitive
Agreements”) with certain Barrick Gold Corporation
subsidiaries (“
Barrick”) and Augusta Investments
Inc. (“
Augusta”) in connection with the previously
announced transaction pursuant to which Bullfrog will acquire
rights to 1500 acres adjoining the Company’s Bullfrog Gold Deposit
from Barrick, and Augusta and certain individuals identified by
Augusta will concurrently complete a C$22 million investment in
Bullfrog (the “
Transaction”).
Bullfrog’s CEO & President, David Beling, commented, “We are
delighted to announce the signing of the Definitive Agreements and
are encouraged by the positive market reaction to the announcement
of the binding term sheet in respect of the Transaction. Bullfrog
will be well-funded to expedite the exploration and development of
the Bullfrog project, and we are excited to welcome our new
cornerstone shareholders, Barrick and Augusta.”
Upon completion of the Transaction, Barrick and Augusta will
become significant shareholders in Bullfrog. Additionally, the
Board of Directors and Management of the Company will be
reconstituted upon closing such that 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. David Beling will remain on
the Board.
The Definitive Agreements formalize the terms in the binding
term sheet dated September 7, 2020 and detailed in the Company’s
press release dated September 8, 2020. The Mineral Lease and Option
to Purchase Agreement between a subsidiary of BFGC and Barrick
dated March 23, 2015, as amended, has been terminated and the
Barrick back-in right has been eliminated. A 2% NSR royalty granted
to Barrick also decreases to a minimum 0.5% NSR royalty on certain
Barrick lands already subject to royalties.
Closing of the Transaction is expected to follow during the
fourth quarter of 2020, subject to customary conditions, including
certain government approvals and the approval of the Canadian
Securities Exchange.
About Bullfrog Gold Corp.
Bullfrog Gold Corp. is a Delaware corporation that
currently controls the commanding land and resource positions in
the Bullfrog Mine area where Barrick produced 2.3 million ounces of
gold by mining and conventional milling beginning in 1989 and
ending in 1999 when ore reserves were depleted. Measured and
indicated 43-101 compliant resources were estimated in mid-2017 by
Tetra Tech Inc. at 525,000 ounces of gold, averaging 1.02 gold
g/t in base case plans of the MS and Bullfrog pits. Most of these
resources are in the north extension to the Bullfrog pit. Inferred
resources were estimated at 110,000 ounces of gold averaging 1.2
g/t, of which most were in the Mystery Hill area adjacent to the
Bullfrog pit and where 17 additional holes were recently
drilled.
It is noted that the 3-year trailing average gold
price is more than $200 higher than the $1,200 average price used
in 2017. The resource estimates were also based on a heap leach
gold recovery of 72% at a minus 3/8-inch feed size compared to the
average 85% leach test recoveries recently achieved on four bulk
samples sized at minus 1/16-inch. Much additional technical and
corporate information may be sourced
at www.bullfroggold.com.
About the Augusta Group
The Augusta Group is a mining sector focused
management group based in Canada and the United States led by
Richard Warke. Augusta has an industry leading track record of
value creation totaling over C$4.5 billion in exit transactions
since 2011 and has strategic partnerships with the leading
entrepreneurs in the mining sector. Additional information on the
Augusta Group can be found at www.augustacorp.com.
Cautionary Note Regarding Forward Looking
Statements
This press release contains certain
"Forward-Looking Statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
United States Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical fact, included
herein with respect to the objectives, plans and strategies of the
Company and those preceded by or that include the words "believes,"
"expects," "given," "targets," "intends," "anticipates," "plans,"
"projects," "forecasts" or similar expressions, are forward-looking
statements that involve various risks and uncertainties.
Forward-looking information in this press release includes but is
not limited to statements regarding the Transaction and changes to
the management and board of the Company.
Such forward-looking information and statements are based on
numerous assumptions, including among others, the Company's ability
to successfully maintain its listings, the stability of industry
and market costs and trends and the Company's ability to obtain all
regulatory approvals required for its planned objectives.
Furthermore, by their very nature, forward-looking information
involves a variety of known and unknown risks, uncertainties and
other factors which may cause the actual plans, intentions, events,
results, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information. Such risks, uncertainties and other
factors include, without limitation, those related to: (a) closing
of the Transaction (b) adverse regulatory or legislative changes
(c) market conditions, volatility and global economic
conditions (d) industry-wide risks (e) the Company's inability to
maintain or improve its competitive position and (f) the ability to
obtain financing needed to fund the continued development of the
Company's business.
Qualified Person
David Beling, P.E. has 56 years of project and
corporate experience in the mining industry and is a qualified
person as defined by Canadian National Instrument 43-101 –
Standards of Disclosure or Mineral Projects. Mr. Beling has
prepared, supervised the preparation of, or approved the technical
information that forms the basis of the Company’s disclosures, but
is not independent of Bullfrog Gold Corp, as he is the CEO &
President and holds common shares and incentive stock options of
the Company.
For further information, please contact David Beling, CEO &
President, at (970) 628-1670.
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