A correction is issued for the release issued at 12:31 PM ET. The
link to the map was omitted in error. The corrected release
follows:
Bravada Gold Corporation (TSX VENTURE: BVA)(FRANKFURT: 6BG) and
Fortune River Resource Corporation (TSX VENTURE: FRX)(FRANKFURT:
RG7A) report that their respective Boards of Directors have agreed,
subject to receiving independent Fairness Opinions, appropriate
approvals of shareholders and the Supreme Court of British
Columbia, and acceptance by the TSX Venture Exchange, to merge into
a single amalgamated company which would retain the name Bravada
Gold Corporation. The amalgamated company will focus exploration
activities on its combined 20 Nevada properties (approximately
13,000ha), located in the Battle Mountain-Eureka trend, the Walker
Lane Trend, and the Northern Nevada Rift (see attached map). In
addition, both companies are well advanced toward acquiring other
strategic properties in these established Nevada gold trends.
The Amalgamation Agreement provides for the exchange of two
shares of FRX for one share of the amalgamated Company and one
share of BVA for one share of the amalgamated Company, or such
other ratios as may be recommended by the author of a Fairness
Opinion and accepted by the Boards of Directors of both
Companies.
It is anticipated that Special meetings of both Companies will
be convened during the month of October 2010 for resolutions of the
Members of each Company followed by Court application and
submissions to the TSX Venture Exchange for listing of the shares
of the amalgamated Company.
Fortune River's contribution
FRX contributes an existing mineral resource at its Wind
Mountain property, a previous Amax Gold open-pit/heap-leach mine.
The project contains an estimated 406,000 ounces of gold in the
Measured plus Indicated Resource categories, 33.7 million tons
averaging 0.411 g/t Au, using a cutoff grade of 0.257g/t Au, plus
an additional 92,000 ounces of gold in the inferred category, 9.8
million tons averaging 0.308g/t Au, using the same cut-off grade
(see FRX news release dated January 8, 2008). The company recently
commissioned an independent NI43-101-Compliant Preliminary Economic
Assessment and associated Technical Report by Mines Development
Associates (MDA), a well-respected engineering group based in Reno.
MDA modelled an open pit using $850 per ounce of gold and $14.50
per ounce of silver. MDA's report indicates the project will have
an NPV@ 5% of US$13.2 million (IRR=15%) at $850 per ounce gold and,
assuming a 20% increase in metal prices, an NPV@ 5% of US$43.7
million (IRR=38%) at $1,020 per ounce gold for the same pit design
(see FRX news release NR-05-10 dated April 13, 2010). MDA
recommends further work that would advance the project through
pre-feasibility at a cost of approximately US$462,000, exclusive of
further delineation and exploration drilling, which it estimates at
an additional cost of $1.4 million.
In addition to Wind Mountain, FRX holds the drill-ready East
Manhattan property (proposed approximately 1, 000m in five
relatively shallow core holes), where past drilling by FRX has
encountered encouraging gold mineralization. Hole-EM08010, located
near the western margin of the property, is particularly
encouraging as it contains two significant intervals (estimated
true thicknesses): 11.25m of 2.868 g/t Au at 91.4m depth followed
by another 11.25m of 0.805 g/t Au at 118.9m depth. Approximately
300 meters to the east along strike is a historic drill hole
(non-NI43-101) that contains similar mineralization at shallow
depths, but for which data cannot be verified.
Currently, Christopher James Gold Corp (CJG.V) is funding
exploration costs to earn an interest in FRX's Highland and Buz
properties, and the two companies equally share funding costs for
the Zebra property; FRX is operator for all three properties. FRX
also holds the Baxter low-sulfidation Au/Ag property and the Mud
Springs Climax-type molybdenum property. In addition to the Nevada
properties discussed above, FRX owns the Drayton Archean gold
property in Ontario and a small equity position in Goldstone
Resources Inc. (GRC.V).
Bravada's contribution
BVA has recently completed an equity financing in order to fund
further exploration activities and to acquire additional attractive
properties, which are now available in the Battle Mountain Gold and
other established Nevada gold trends due to poor market conditions
for junior explorers. BVA recently completed a deep drilling
program at its Signal property (1,270m as two core holes) and is
currently drilling the first deep holes to explore the PH property
(approximately 1, 000m as two core holes). Its SF property is
permitted and bonded, and may be drilled this Fall (approximately
600m as two R.C. holes).
Other assets within BVA include a royalty on a small barite
deposit on its Shoshone Pediment property, being evaluated by
oil-field service giant Baker Hughes Incorporated (BHI.N), an
exploration earn-in on its HO gold property funded by start-up
company NuLegacy Gold Corporation, currently a private Nevada
focused gold exploration company, together with an equity position
in NuLegacy, and a trailer and warehouse facility in Crescent
Valley, Nevada. Bravo Gold Corporation (BVG.V) currently holds 34%
of BVA's outstanding shares and its equity holding is expected to
be held as a long-term investment.
Why the combination makes sense
Operations of the amalgamating companies are conducted by Manex
Resource Group support staff in its Vancouver office and geology
staff in its Reno office. The staff and consultants are well
respected in the Canadian junior market and in the Nevada
geological community. A business arrangement between the
amalgamating companies would result in significant benefits:
-- Greater efficiency in the administration of the two companies as a
merged entity
-- Reduction of administrative costs
-- Potentially greater ability to access exploration funds for the
consolidated group of mineral properties
-- Increases the company's visibility as a potential JV partner, both to
acquire new properties and to further develop mines at the company's
properties
-- Presents to investors a premier Nevada-focused exploration company with
a large portfolio of high-quality properties with potential for year-
round exploration.
Business approach
The Amalgamated Company will explore for new multi-million
ounce, high-grade gold deposits and will then seek to joint-venture
the mine development of those discoveries with one of the major
gold-mining companies while retaining a sufficient interest to
positively affect the value of the Amalgamated Company. Those
discoveries that do not meet this criterion will be joint-ventured
with an appropriate smaller company or dropped.
Joe Kizis is President of both amalgamating companies and
proposed President of the Amalgamated Company. He comments, "We
believe that the amalgamated company will be stronger than the two
amalgamating companies would be separately. It will have a
potentially economic asset base with the Wind Mountain property,
which is highly leveraged to the price of gold. It will also have
several high-quality properties which are permitted, bonded and
ready for drilling along well-established gold trends in one of the
world's best gold jurisdictions, increasing the chance for new,
multi-million-ounce gold discoveries."
About Bravada Gold Corporation
Bravada Gold Corporation is a member of the Manex Resource Group
of companies with an exploration office in Reno, Nevada from which
it is exploring its extensive Carlin-type gold holdings
strategically located within the Battle Mountain/Eureka "Cortez"
gold trend in Nevada. Bravo Gold Corp. (BVG.V) owns 34% of
32,519,218 Bravada common shares currently outstanding.
About Fortune River Resource Corp.
Fortune River Resource Corp. is exploring for high-grade gold
deposits within two prolific gold producing geologic provinces,
Nevada and Ontario. The Wind Mountain, East Manhattan, Highland,
Baxter, Mud Springs, Buz and Zebra projects are located in Nevada
and the Drayton project is located in Ontario.
Joseph Anthony Kizis, Jr. (P.Geo.) is the Qualified Person
responsible for reviewing the technical results in this
release.
On behalf of the Board of Directors of Bravada Gold Corporation
and Fortune River Resource Corporation
Joseph A. Kizis Jr., Director, President, Bravada Gold
Corporation and Fortune River Resource Corporation
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for the company's
projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Bravada Gold
Corporation does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
To view the map accompanying this press release please visit the
following link:
http://media3.marketwire.com/docs/FRX_BVG_basemap.pdf
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.
Contacts: Bravada Gold Corporation / Fortune River Resource
Corp. Liana Shahinian 604.641.2773 or Toll Free: 1.888.456.1112
liana@mnxltd.com www.bravadagold.com / www.fortuneriver.ca
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