Coastal Gold Enters Into Agreement to Sell Mangabal Nickel-Copper Project in Brazil
March 04 2014 - 8:00AM
Marketwired
Coastal Gold Enters Into Agreement to Sell Mangabal Nickel-Copper
Project in Brazil
TORONTO, ONTARIO--(Marketwired - Mar 4, 2014) - COASTAL GOLD
CORP. (TSX-VENTURE:COD)(FRANKFURT:CY41) (the "Company") has entered
into an agreement (the "Agreement") to sell its wholly-owned
subsidiary, Castillian Metais Ltda. ("CML"), to Falcon Metais Ltda.
("Falcon Metais"). CML holds a 100% interest in the Mangabal
nickel-copper project in Goias State, Brazil (the "Mangabal
Project").
In consideration for the shares of CML, Falcon Metais has agreed
to assume all liabilities and obligations of CML, including those
relating to the Mangabal Project, from and after the date on which
the sale closes (the "Closing Date").
Pursuant to the Agreement the Company has also agreed to issue
to Amazon Potash Corp. ("APC"), the parent company of Falcon
Metais, 3,117,040 common shares of the Company at a deemed price of
Cdn$0.05 per share in repayment of R$111,900 that Falcon Metais
paid on behalf of the Company to the Departamento Nacional de
Produção Mineral ("DNPM") and an additional R$219,700 that Falcon
Metais has agreed to pay on behalf of the Company to DNPM in
settlement of liabilities relating to the Mangabal Project (the
"Shares for Debt Settlement"). On March 3, 2014, the date on which
the Company entered into the Agreement, one Brazilian Real was
worth 0.47 Canadian Dollars.
Dr. Bill Pearson, President and CEO of the Company, commented:
"The sale of the Mangabal Project is consistent with Coastal Gold's
stated strategy to sell its non-core assets and focus the Company's
resources on the development of the Hope Brook Project."
The completion of the sale of CML and the Shares for Debt
Settlement are subject to certain conditions precedent, including
acceptance by the TSX Venture Exchange.
The Company also announces that Ms. Colinda Parent has resigned
as Vice President, Corporate Development of the Company. The
Company thanks Ms. Parent for her contributions and wishes her well
in her future endeavors.
ABOUT COASTAL GOLD
Coastal Gold is a Canadian mineral exploration company listed on
the TSX Venture Exchange under the symbol "COD". Coastal Gold's
flag ship property is the Hope Brook Gold Project located in
southwestern Newfoundland, which has 19.9 million tonnes at 1.93 g
Au/t for 1,239,000 ounces of indicated mineral resources and 1.3
million tonnes at 3.22 g Au/t for 138,000 ounces of inferred
mineral resources. In addition, there are inferred mineral
resources in the tailings of 4.9 million tonnes at 0.85 g Au/t and
0.09% copper containing 134,500 ounces of gold and 9.5 million
pounds of copper. See the technical report entitled "2013 Mineral
Resource Estimate Technical Report, Hope Brook Gold Project,
Newfoundland and Labrador, Canada" effective as of December 4,
2013, which is available under the Company's profile on SEDAR at
www.sedar.com.
QUALIFIED PERSONS
Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold
and a Qualified Person as defined by NI 43-101, has reviewed and
approved the scientific and technical content of this news
release.
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
statements regarding the estimation of mineral resources and the
Company's plans to advance the Hope Brook project. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, political and social
uncertainties; the actual results of current exploration
activities; future prices of mineral prices; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and shortages and other risks of the mining industry.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information 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 information. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
NEITHER TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Coastal Gold Corp.Rob HopkinsManager, Investor Relations
416-861-5899info@coastalgold.cawww.coastalgold.caCoastal Gold
Corp.Bill PearsonPresident &
CEO416-861-2968president@coastalgold.cawww.coastalgold.ca
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