Montreal, February 24, 2014 /TNW/ -
Golden Hope Mines Limited (TSX
VENTURE: GNH)(Pink Sheets: GOLHF) - Golden
Hope Mines Limited ("GNH, or the Company") is pleased to announce
that it has signed a Letter of Intent ("LOI") with Uragold Bay
Resources ("UBR") (TSX Venture: UBR) to advance the
Bellechasse-Timmins Gold Deposit ("B-T") in the development of a
producing mine. UBR will be responsible for obtaining all required
permits, approvals, and documentation associated with going into
production, in return for a 30% interest in B-T. UBR will then have
120 days to obtain project financing, which, if successful, will
earn UBR a further 20% interest, giving them a 50% interest
in
B-T. The companies
will then form a Joint Venture (JV) for the operation of the mine,
with UBR serving as operator. GNH will have a carried interest into
production, and will receive a 50% Net Proceeds Royalty ("NPR") on
the gold produced.
The LOI states that
UBR can earn up to a 30% undivided interest in the B-T by
performing, completing and delivering the following work and
documentation within 18 months of the signing:
-$100,000 paid to GNH
within 6 months of the date of the signing of the LOI in three
equal tranches. The first tranche of $33,000 was paid upon the
signing of the LOI
-A review of the
previously published NI 43-101 Resource Estimate for gold at
Bellechasse-Timmins in southeastern Quebec by a qualified person(s)
or firm of qualified persons as defined by NI 43-101 Standards for
Disclosure for Mineral Projects
-UBR will mandate a
Qualified Mining Engineering Firm for a Preliminary Economic
Assessment ("PEA") with respect to the production of the gold
deposit including CAPEX, OPEX, IRR, NPV, Mining Plan, Geotechnical
Assessment of pit, overburden stockpiles and tailings,
etc.
-An Environmental
Audit in accordance with Directive 19, Article 22 of the "Loi sur
la qualite de l'environnement" by an independent qualified
consultant, which shall include a study of the property and the
environmental impact of mining activities.
-A Certificate of
Authorization ("CA") from the municipality of Saint
Magloire.
-A Certificate of
Authorization ("CA") from the Ministere de l'Environnement for the
permitting of a small scale gold production of 2000 metric tons of
material per day.
-A Land Survey by a
qualified Surveyor ("arpenteurs-geometres") which will be filed for
approval with the Bureau de l'arpenteur general du
Quebec.
-A Mining Lease from
the Ministere de Ressources naturelles et de la Faune du Quebec
('MRNF") for the operation of a gold mine.
-A Reclamation and
Restoration Plan approved by MRNF
UBR shall bear all the costs
associated with the work listed above.
UBR may also earn an
additional 20% undivided interest (for a total of 50%) if it
provides all of the required financing to fund the start of
production of B-T, as set out in and according to the PEA Plan, not
later than 120 days after the successful completion and issuance of
the initial 30% interest.
This transaction will
be binding upon:
-
1.
The approval of the Board of Directors of both GNH
and UBR.
-
2.
Receipt of the first tranche of $33,000
-
3.
All required regulatory approvals.
-
4.
A definitive agreement to be concluded within 45
days.
Frank Candido,
President and CEO of Golden Hope Mines, remarks, "We are very
pleased with this Letter of Intent entered into by two companies
with an equally vested interest in gold exploration and development
in southeastern Quebec. GNH has been entertaining potential offers
to move towards production since the publication of its first
resource estimate in mid 2012. We believe that the nature of the
gold deposit, the location of the property, the support from the
municipality of Saint-Magloire, Quebec and the local infrastructure
all make for an excellent opportunity to bring profitable gold
production back to southeastern Quebec. Our excellent relationship
with the UBR Management has always been cordial and we have always
looked to work together to advance our common interests. This
Letter of Intent and Joint Venture Agreement is simply an extension
of that co-operation."
"We believe that this
agreement is a very positive development for the Company and its
shareholders. If all of the terms of the agreement are met, Golden
Hope Mines will have a carried interest into production, and will
then receive a 50% NPR on the gold produced. Shareholders will then
realize the true value of the gold resources at
Bellechasse-Timmins."
Patrick Levasseur,
President and COO of Uragold Bay Resources remarks: "We are
extremely pleased that our offer was chosen by GNH and that we will
become a partner in the development of the Bellechasse-Timmins gold
deposit. We look forward to working with GNH and its President
Frank Candido, who has done a fantastic job
in developing the project and bringing attention to southeastern
Quebec. GNH are the pioneers in the exploration of this area and
the leaders in the development of a gold deposit in the Beauce
region of Quebec."
A feasibility study has not been
completed and there is no certainty the proposed operation will be
economically viable
Resignation of
Arvind Jain
Golden Hope Mines
also announces that Arvind Jain will be resigning from the Board of
Directors effective February 28, 2014. Mr. Jain has recently
retired from his position as Vice-President of Strategy and
Investment at Rio Tinto Alcan and looks forward to spending more
time with his family in San Francisco, California. The entire
Golden Hope Mines team would like to thank Mr. Jain for all his
help, insight and advice during his time on the Board.
Condolences to Bob
Rose
The Board of
Directors of Golden Hope Mines would also like to extend its
sincerest condolences to the family of Mr. Bob Rose of Dominick and
Dominick in Toronto, Canada. Mr. Rose has always been a strong
believer in the Bellechasse-Timmins gold deposit and his support
has always been appreciated.
Statements Regarding Forward-Looking Information
Information set forth in this news release by
Golden Hope Mines Limited
may contain forward-looking information
within the meaning of Canadian securities laws. Forward-looking
information includes statements that relate to future, not past,
events. In this context, forward-looking information often
addresses the Company's expected future business and financial
performance, and often contains words such as "anticipate",
"believe", "plan", "estimate", "expect" and "intend", statements
that an action or event "may", "might", "could", "should" or "will"
be taken or occur, or other similar expressions (including negative
and grammatical variations). Such information includes plans,
timing and expectations for updates of the Company's resource
estimate; expectations regarding the Company's planned exploration
activities and budget; the timing for receipt of drilling and assay
results; and plans for further exploration and drilling at
Bellechasse-Timmins and Champagne/VMS and other targets along the
Bellechasse Belt. Specifically
relating to possible mining of the Bellechasse-Timmins gold
deposit, the Company must obtain specific permits beyond the
Certificate of Authorization; may complete additional exploration
and development work; and obtain appropriate financing before
mining may begin. By their nature,
forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance or achievements, or other future
events, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. Such
factors include, among others, the following risks: the risks
associated with any outstanding litigation; risks associated with
exploration activities and project development; timing of and
unexpected events regarding the receipt and interpretation of
drilling and assay results; delays in the preparation of resource
estimate updates; the need for additional financing; operational
risks associated with mineral exploration; fluctuations in gold and
other commodity prices; title matters; technical and permitting
issues; environmental liability claims; insurance matters; reliance
on key personnel; the potential for conflicts of interest among
certain officers, directors or promoters with certain other
projects; the absence of dividends; competition; dilution; the
volatility of our common share price and volume; the impact of
taxation; and general economic conditions. Forward-looking
information is based on management's beliefs, estimates and
opinions on the date hereof and the Company undertakes no
obligation to update any forward-looking information if these
beliefs, estimates and opinions or other circumstances should
change. Investors are cautioned against attributing undue certainty
to forward-looking information.
Any historical mineral
quantities set forth herein are, unless otherwise indicated, not
compliant with National Instrument 43-101.
About Golden Hope
Mines Limited
Golden Hope Mines
Limited is a mineral exploration company that seeks to grow
shareholder value through the acquisition, exploration and
development of potentially large-scale gold and base metal projects
suitable for underground and/or open-pit mining. The company's
focus is in southeastern Quebec, Canada. The company's claim blocks
lie within an area that extends approximately 100 kilometres along
the Appalachians of southern Quebec from near
Ste-Lucie-de-Beauregard to about 16 kilometres southwest of
Beauceville. The Bellechasse-Timmins gold deposit lies 5 kilometres
southeast of St-Magloire within the Bellechasse Belt an
approximately 18 kilometre long mineralized area. The
Bellechasse-Timmins gold deposit includes the T1, T2A, T2B,
Ascot/Road gold zones, and the 88 Diorite. The company is also
looking to develop the Champagne zone, a partially explored base metal and gold deposit that
lies within the Company's Bellechasse Belt claims. A recently
completed VTEM survey may identify other similar targets along the
horizon. The company is also working to
develop other targets within its claim blocks including the FSG
gold and base metal target, Chute du Bras, the LG showing, Moose
Cliff, and Talon. For further information on Golden Hope Mines
Limited please visit www.goldenhopemines.com .
For further information:
Golden Hope Mines
Limited?
Frank Candido:
President, Director
Tel: 514-750-8218
fcandido@goldenhopemines.com
info@goldenhopemines.com
www.goldenhopemines.com
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