Antioquia Gold Inc: Financing & Concordia Betulia Deal with Miranda Gold
CALGARY, ALBERTA--(Marketwired - May 20, 2014) - Antioquia Gold Inc. ("Antioquia Gold" or the "Company") (TSX VENTURE:AGD)(OTCQX:AGDXF) is pleased to announce that it has secured a US$5 million loan from Desafio Minero S.A.C., Antioquia's largest shareholder, the proceeds of which will be used to fund further development of the Cisneros Project to take it to a production stage. It is expected that the following key activities will be carried out in 2014:
- Detailed mine planning
- Guaico Tunnel development
- Environmental study for Guayabito Tunnel and Process Plant
- Rock Mechanics & Hydrological studies
- Surface land rights and land purchases.
Antioquia is also pleased to announce that in accordance with its strategic decision to focus on developing to production its Cisneros assets, has reached an agreement with Sorotama and Miranda Gold (Miranda) for its Concordia Betulia prospects and rights.
Miranda acquired 2 properties of the Concordia Betulia prospects (one concession and one application) totaling approximately 10,700 Ha. through an agreement with Antioquia. Oribella as the Miranda project is now called, is subject to a 0.5% royalty to Antioquia that can be purchased for US$1,500,000 and a 2% royalty to Soratama Gold (a wholly owned subsidiary of Barrick Gold Corp.).
Miranda acquired the property, subject to the royalties, by agreeing to pay the licence canon due on May 14, 2014 of COP110,803,026 (approximately US$58,000) and to reimburse Antioquia Gold for the application payment of COP101,136,976 (approximately US$53,000) when it is registered with the ANM as a contract. If the application is converted to a licence on or before the anniversary of the agreement Miranda will pay Antioquia an additional US$30,000 payment on the anniversary date. No other obligations are required to keep the project in good standing and Miranda may drop or reduce the lands at any time.
Forward-Looking Statements:
This news release contains certain forward-looking statements, including all statements with respect to the Company's plans and expectations relating to the Cisneros Project. Forward-looking statements are based on management's current assumptions and are subject to risks and uncertainties. There can be no assurance that any forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information due to a number of factors beyond the Company's control. These assumptions, risks and uncertainties include, among other things, management's assumptions about government permitting, equipment procurement and the availability of the necessary consultants and capital, as well as the risks of delay in any of these activities and the risks inherent in Antioquia Gold's operations, including the risks that the Company may not find any minerals in commercially feasible quantity or raise enough money to continue to fund its exploration plans. Furthermore, the Company may decide to alter its planned activities on the Cisneros Project depending on a variety of factors, including but not limited to, market conditions, availability of further financing(s), and results of development on the Cisneros Project at each stage. These and other risks are described in the Company's public disclosure documents filed on the SEDAR website maintained by the Canadian Securities Administrators. The Company does not undertake to update any forward-looking information except as may be required by applicable securities laws.
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.