VANCOUVER, BRITISH COLUMBIA, Jul. 27, 2010 (Marketwire) -- Batero Gold Corp. (TSX VENTURE:BAT) has closed its Qualifying Transaction involving the acquisition of all of the issued and outstanding shares of Bahia Bonita Properties SA. Bahia is the indirect owner of a mineral property located in the municipality of Quinchia, department of Risaralda, Republic of Colombia.
The Company's common shares will resume trading as a Tier 2 mining issuer on the TSX Venture Exchange on July 27, 2010, under the symbol BAT. The Company changed its name from Angus Resources Inc. to Batero Gold effective July 19, 2010.
As consideration for all of the outstanding shares of Bahia, the Company has issued an aggregate of 6.65 million common shares. In addition, the Company has agreed to make cash payments totalling $2.2-million (of which $450,000 was paid on the closing date) and incur expenditures on the Quinchia property totalling $5-million over four years. The Company has also agreed to issue an additional two million common shares if a National Instrument 43-101-compliant report is prepared at any time by the Company that establishes the existence of at least five million ounces of gold categorized as measured resources (as such term is defined in NI 43-101) at a cut-off grade of 0.7 grams per tonne of gold or gold equivalent on the Quinchia property.
Mr Brandon Rook, President and Chief Executive Officer of Batero Gold, stated: "I am pleased to announce the closing of the Bahia-Batero Qualifying Transaction, together with the $5.3 million equity raise. We, at Batero are highly motivated to translate the potential of the project recognized to date into significant shareholder returns'. The project is comprised of three recognized gold target centres which previously have had a phase 1 drill program completed. All target centres intersected gold mineralization from surface and the majority of the drill intersections remained mineralized at the end of holes. Average depths are approximately 250 metres. The Company has also aggressively started a systematic exploration program to explore the structural hosted mineralization related to each of the target centres. The three gold target centres are located along a three kilometre strike extension located on the Batero-Quinchia project. I look forward to updating our shareholders' in the near future regarding the Company's exciting gold exploration and development activities at Quinchia."
The Company completed financings by way of a short-form offering document and a brokered private placement. Pursuant to the short-form offering, the Company issued four million units at a price of 50 cents per unit, for proceeds of $2-million. Each unit consists of one common share and one-half of one common share purchase warrant, with each warrant entitling the holder to acquire, for a period of two years, one common share of the Company at a price of 75 cents per share. Pursuant to the brokered private placement, the Company issued 4.6 million units at a price of 50 cents per unit, for proceeds of $2.3-million.
In addition, the Company completed a non-brokered private placement. Pursuant to the non-brokered private placement, the Company issued two million units at a price of 50 cents per unit, for proceeds of $1-million.
The Batero-Quinchia Property
The Batero-Quinchia gold project is located within the Municipality of Quinchia, Department of Risaralda, Republic of Colombia, approximately 55 km to the north of the regional capital, Pereira. The property consists of a 1,407.43 hectare tenement and is supported by a comprehensive infrastructure network of roads, water and power.
The Quinchia district is recognized as a stable and secure environment - the local community's citizens ("The Paisas") are educated, and work primarily in commerce, agriculture, and mining. The Company's preliminary "on the ground" social and community work to date has found very strong support for the project and in general for the exploration and mining industry. The Company's integrated social and community development team has been on the ground for several months already building positive outcomes for Batero in anticipation of a comprehensive exploration and development work program that is now underway.
The Batero-Quinchia gold project is located in the prolific Middle Cauca Belt which hosts two world class gold deposits, Marmato (7.5 million ounces of gold contained; Medoro Resources - located approximately 20 km's north of Batero-Quinchia) and La Colosa (12.9 million ounces of gold; AngloGold Ashanti - located approximately 60 km's south of Batero-Quinchia). This belt is also host to other significant porphyry gold deposits including Titiribi, La Mina, and Quebradona.
The property was optioned to another company in 2006 whom carried out a modern and integrated exploration program consisting of stream geochemical sampling, rock sampling, mapping and geophysics. This led to the completion of a 15 hole exploration diamond drill program totalling 4090 meters. The drill results outlined three typical Au-Cu porphyry mineralized zones. To date, the three Miocene intrusive centers have been identified in a north-south trend with a strike extension of approximately 3 kilometres, and at elevations between 1600m and 1950m. These centres all host gold and copper mineralization.
The fifteen holes were drilled to an average depth of 250.0 metres. The two deepest drill holes tested the main targets to a total depth of 492.7 and 550.0 metres using inclined HQ size holes.
Batero's focus in the near term is the target centre named La Cumbre. This target centre was first defined by historic diamond drill hole #8 which intersected:
-- 210 metres of 0.80 g/t gold and 0.15% copper from surface to a vertical
depth of 150 metres - the drill hole remained in significant gold
mineralization at the end of the drill hole;
This intersection was followed up with diamond drill hole 18, which was drilled 250 metres to the south. Significant low-grade gold mineralization was confirmed at surface and continued and remained in mineralization at the end of the drill hole to 520 metre depth.
Batero's main objective is to generate a timely and compliant NI 43 101 resource estimate while simultaneously working a systematic exploration program testing other potential areas of interest. The directors and officers of the company are Brandon Rook, president, chief executive officer and director, Nick Demare, chief financial officer and director, Rafael Alfonso Roa, director, and Darrell Podowski, director.
For further information please go to our website at www.baterogold.com.
Darren Anderson, P.Geo., the qualified person for the company, has reviewed the accuracy of the technical portion of the news release.
ON BEHALF OF THE BOARD OF BATERO GOLD CORP.
Brandon Rook, President & CEO
Batero Gold Corp. (TSX VENTURE:BAT) is a Vancouver-based precious and base metals exploration and development company focused in Colombia's emerging and prolific Mid-Cauca porphyry gold and copper belt. Batero is located within the Quinchia district and has the right to earn a 100% ownership in the Quinchia Project, comprising a 1407.43 hectare tenement. The Quinchia Project includes three known gold porphyry target centres. The Quinchia district and Batero's project is considered socially stable and mining friendly and is supported with a comprehensive infrastructure network.
Batero has assembled a strong management and technical team in Colombia whom have contributed to numerous significant discoveries throughout Colombia. Batero plans to leverage its share structure with strategic local and regional relationships, and long-term financial partners, to develop its prospective project into what the Company believes will be Colombia's next major mining venture.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words expects, plans, anticipates, believes, intends, estimates, projects, potential and similar expressions, or that events or conditions will, would, may, could or should occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
"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."