Gold Bullion Announces Mou With Iamgold
10 Avril 2014 - 4:41PM
Access Wire
Montreal, Quebec / ACCESSWIRE / April 10, 2014
/ Gold Bullion Development Corp. (TSXV: GBB)
(OTCPINK: GBBFF) (the "Company" or "Gold Bullion") announces that
it has signed a Memorandum of Understanding ("MOU") with IAMGOLD
Corporation ("IMG") dated April 8, 2014 with respect to IMG
processing ore emanating from the Granada mine site at its Westwood
Mill. After appropriate due diligence, Management has determined
IAMGOLD Corporation is the best-positioned local mill facility to
process the mineralized material from Granada. In summary, its
proximity provides the most cost effective and economic option for
the Company due to the short hauling distance from the Granada mine
site.
The subject-mineralized material is to be mined from the near
surface drill indicated gold resource identified in the Extend LONG
Bars Zone. At this stage of property development, the Company is
targeting a total of 500,000 to 600,000 tonnes of mineralized
material for processing over a three-year period. The transaction
terms outlined in the MOU are non-binding on the parties and the
MOU is expected to be superseded by a definitive milling agreement
to be signed between the parties no later than June 30th, 2014.
Memorandum of Understanding
Under the proposed terms of the MOU, IMG anticipates milling
between 500,000 to 600,000 tonnes of gold mineralized material for
Gold Bullion or 150,000 to 200,000 tonnes on an annualized basis.
Management has set out the initial terms of the milling agreement
at three years with the subject-mineralized material to be milled
in batches. It is expected typical batch size will range from
35,000 to 50,000 tonnes with each batch of material to be processed
consecutively as one complete batch.
Processing will take place on a schedule of one batch every
three months. Once each batch of ore has been processed, settlement
to Gold Bullion is to be made in the form of recovered precious
metals that will be deposited to Gold Bullion metal accounts at the
refiners' offices.
The milling agreement will have an Evergreen clause that will
renew the agreement automatically for an additional three years
upon completion of this first agreement unless either party
notifies the other in writing otherwise. This written notice must
be with 120 days advance notice prior to the end of this initial
term. The milling agreement can also be terminated earlier for
convenience or based on other changes in circumstances, again by
either party. Detailed specifics of the milling agreement will be
forthcoming when finalized by both parties.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior
natural resource company focusing on the exploration and
development of its Granada Property near Rouyn-Noranda, Quebec, and
its high grade Castle Silver Mine in Gowganda, Ontario. Additional
information on the Company's Granada gold property is available by
visiting the website at www.GoldBullionDevelopmentCorp.com and on
SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer
For further information contact:
Frank J. Basa, P. Eng., President and CEO at 1-514-397-4000.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. 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.
SOURCE: Gold Bullion Development
Corp.
Gold Bullion Development Corp. (TSXV:GBB)
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