Bravada and Fortune River Settle Ratios of Amalgamation
September 16 2010 - 1:58PM
Marketwired
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
on the ratios for the proposed amalgamation after considering
advice from external advisors relative to the preparation of a
Fairness Opinion addressed to the Amalgamating Companies.
The ratios are:
FRX: 0.85 share of the Amalgamated Company for 1 share of
FRX.
BVA: 1.00 share of the Amalgamated Company for 1 share of
BVA.
Previously, as disclosed in a common news release (NR-10-10 for
BVA and NR-13-10 for FRX), the Companies had agreed on a
preliminary basis on ratios of 0.5 shares of the Amalgamated
Company for 1 share of FRX and 1.0 share of the Amalgamated Company
for 1 share of BVA.
The new ratios acknowledge a higher value for FRX's Wind
Mountain gold resource than is currently being reflected in FRX's
share price and results in the Amalgamated Company being owned
equally by shareholders of FRX and shareholders of BVA. The
proposed Amalgamation is subject to appropriate approvals of
shareholders and of 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. Both companies are currently drilling
exploration properties and both are well advanced toward acquiring
other strategic properties in these prolific Nevada gold trends.
BVA is drilling the PH Carlin-style exploration property, located
along the Battle Mountain-Eureka Gold trend 6 km east of the Tonkin
Springs gold deposits and 13km northwest of the Gold Bar satellite
deposits. FRX and partner Christopher James Gold Corp are drilling
the Buz low-sulfidation exploration property, located along the
Walker Lane Gold trend 3km northeast of the partnership's Highland
property.
In addition to the extensive package of exploration properties
along Nevada's long-established gold trends, the Amalgamated
Company will include 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 0.411g/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$13.2million (IRR=15%) at $850 per ounce gold and,
assuming a 20% increase in metal prices, an NPV@5% of
US$43.7million (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 work that could improve economics further and advance
the project through pre-feasibility at a modest cost.
President Joe Kizis commented, "Although valuing junior
exploration companies is difficult at best, we feel we are
providing both groups of shareholders with significant upside. BVA
shareholders participate in an established resource, which we feel
is underappreciated in the market and will improve with further
optimization studies. FRX shareholders participate in an excellent
portfolio of exploration properties that have potential for very
large Carlin-type gold deposits. Both groups of shareholders will
benefit from a more steady flow of news as the properties are
advanced by the Amalgamated Company and its partners."
It is anticipated that Special meetings of both Companies will
be convened during the month of November 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.
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 and Fortune River Resource Corp do 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.
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 and 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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