News Releases 2014
bellhaven copper & gold inc
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NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

 

Vancouver, B.C. - May 22, 2014. Bellhaven Copper & Gold Inc. (TSX-Ventures: BHV) (“Bellhaven” or the “Company”) is pleased to announce, subject to TSX-V Exchange, (“Exchange”) approval, that it has reached an agreement with Alberto Montoya, underlying partial owner of the La Mina gold-(copper) porphyry deposit concession (see below for further description of deposit) whereby the Company increases its ownership from 46 % (currently) up to 76%  subject to the following significant terms, including final Exchange approval:

 

•    The Company issue Mr. Alberto Montoya 15 million common shares as a deemed price of C$.05 each; and
•    The Company issue 10 million warrants to acquire 1 common share per warrant in exchange for C$.05 each for a 5-year

      term; and
•    The Company nominate Mr. Montoya or his designee to the Board of Directors of the Company; and
•    The Company pay in cash US$200,000 upon closing of its currently contemplated financing as set out in a news release

      dated March 13, 2014; and
•    The Company be granted an option to acquire the remaining 24 percent interest in the La Mina Concession for US$1.3

      million on or before January 15, 2018; and
•    The Company and Mr. Montoya reach agreement regarding the operating procedures for the advancement of the deposit

      should the Company not exercise its option to acquire the remaining 24% interest in the La Mina Concession using

      industry standard operating terms as prescribed by the Rocky Mountain Mining Foundation; and
•    Should the Company decide to exercise its option to acquire the remaining 24% interest of the La Mina Concession, thus

      owning outright a full 100% interest, no further payment, royalty or any other interest will be due Mr. Montoya and the

     Company will have gained full ownership without any royalties or underlying obligation owed to any other party within

      the regulations prescribed by the Colombian Mining and Mineral Extraction Law.

Patrick Abraham, director states, “Increasing the Company’s ownership of this highly prized asset to a majority interest with a clear path toward complete and total ownership under very favorable terms is a key milestone for the Company.  Deferring the final option payment out to secure 100% of the deposit until 2018 relieves significantly a major financial burden on management and shareholders while securing majority ownership of a major asset.”

 

“Further, and on behalf of the Company, I would like to thank Mr. Montoya for the patience he so graciously extended Bellhaven during this highly challenging financial period and willingness to restructure the purchase terms of the La Mina Concession in a way more beneficial to all of its stakeholders.  I look forward to working with Mr. Montoya or his nominee on the board.”
 

The terms of the original La Mina option earn-in agreement entered into between the Company and Mr. Montoya were set out in a news release dated May 17, 2010 and later revised per the terms noted in a news release dated November 12, 2013.

 

The Company is also pleased to announce that it has reached agreement with Varela Consulting Group, Inc. to convert a loan of C$7,000 into common shares of the Company at a deemed price of C$.05 per share for a total of  140,000 shares, subject to Exchange approval.

 

Lastly, the company has reached agreement with 3 former employees and 1 current officer and director (Ms. Milagros “Millie” Paredes, CFO, COO, President) whereby the 3 former employees will receive collectively 275,000 shares and Ms. Paredes will receive 300,000 shares for full and final satisfaction of fees and cash payments otherwise due them and for the services they have rendered over the last 7 months while the Company has not had the means to pay them.  The Company would especially like to thank this dedicated and highly-loyal group of current and past associates and is hopeful these shares, if granted, will partially ease the economic burden they may have experienced.

 

All share issuances noted herein remain subject to the acceptance of the TSXV and are also subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.

 

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

 

About Bellhaven

 

Bellhaven Copper & Gold Inc. is a Canadian-listed (TSX-V: BHV) exploration company exploring for gold and copper in Panama and Colombia.  The Company’s goal is to be a leader in gold and copper development in Panama and Colombia.  Bellhaven focuses on discovery, acquisition and development of high-quality resources in a safe and responsible manner for the benefit of all of its stakeholders.

 

The Company’s flagship project is the La Mina gold-(copper) porphyry deposit in the Middle Cauca belt of Colombia.  The total La Mina resource now includes 1.6 Moz gold and 419 million pounds of copper (or 2.55 Moz gold equivalent) contained in 79.9 million tones averaging 0.62 g/t Au, 0.24% Cu, or a gold equivalent grade of 1.0 g/t (based on a 0.30 g/t Au cutoff grade).  The average grade of 1.0 g/t gold equivalent makes La Mina one of the highest grade gold-(copper) porphyry deposits in the Americas.  The Company is currently seeking to develop and to grow these resources through mine development and through ongoing exploration on the La Mina concession.  For more information regarding Bellhaven, please visit our website at www.bellhavencg.com.
 

  

On behalf of the board of directors,

Patrick M. Abraham

BELLHAVEN COPPER & GOLD INC.

 

Corporate Contact in North America:
Mrs. Milagros “Millie” Paredes, President/Director
U.S. Tel:  (971) 344-1500

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Corporate Contact:
Mr. Patrick Abraham, Director
U.S. Tel:  253-509-8512

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Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements.  Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development.  As a result, actual results may vary materially from those described in the forward-looking statements.

 

Gold equivalent grades have been calculated using the following formula:  AuEq = Au(g/t) + [Cu(%)} x {%Recoverable Cu / %Recoverable Au} x {Net Cu Price/Net Au Price} x {%Payable Cu / %Payable Au x 22.0462 x 31.1035].  Metal recoveries are estimates based on metallurgical results announced in Bellhaven’s news release dated Nov. 15, 2011.  Net metal prices for gold and copper are the long-term forward curve metal price minus refining charge.  Metal prices based on the long-term forward curve are as of May 8, 2013 (US$1482 for gold and $3.40/lb for copper).  Metal refinery charges and % payable metal by the smelter are estimates based on third-party consultants.  Metal prices, refinery charges and % payable metal are not constant and are subject to change.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.  There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.

 

“The scientific and technical information in this news release was prepared under the supervision of Mr. Robert Wasylyshyn, P.Geo.  Mr. Wasylyshyn is an Independent Director of Bellhaven and has been involved in the mining and exploration industry in North and South America, as well as Europe for over 35 years. He is a member in good-standing with the Association of Professional Engineers and Geoscientists of the Province of B.C and is the Company’s qualified person as defined by National Instrument 43-101.

 

Neither the 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.