Gold Bullion announces signing of custom milling agreement with IAMGOLD – Westwood Mill and the filing of its request for Certificate of Authorization
VANCOUVER, July 14, 2014 /PRNewswire/ – Gold Bullion Development Corp. (TSXV:
GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) announces it
has signed a custom milling agreement with IAMGOLD to process ore from
the Granada gold property at their Westwood Mill facilities. The
officers of both companies have approved this agreement.
This agreement is a win-win situation for both companies where Gold
Bullion will be able to minimize its initial capital investment and
IAMGOLD will be able to utilize some of the excess mill capacity at
Westwood, which is expected to reduce its overall processing costs.
The signing of this agreement is a significant milestone for the Company
and its shareholders as an efficient, direct, well-defined path to
commercial gold production using Granada ore via implementation of the
“rolling start” concept.
The agreement provides for and delineates the terms as follows:
-- Receipt of Gold Bullion ore from the Granada project to be processed in 50,000 to 70,000 tonne batches three times per calendar year at the Westwood site. The annual target is set at 192,000 tonnes. The agreement anticipates that gold doré bars will be poured at the IAMGOLD mill, then transported by secure service to the Royal Canadian Mint for refining, with the finished product then sold as bullion to Scotia Mocatta, a division of Scotiabank Global Banking and Markets (Bank of Nova Scotia). -- An initial three-year term with access to additional milling years subject to CAPEX investment in the mill by Gold Bullion. -- Contract commencement is subject to the following: o Gold Bullion obtaining its Certificate of Authorization from the proper Quebec authorities for open pit mining operations at Granada; o IAMGOLD obtaining its Certificate of Authorization from the proper Quebec authorities for the processing of Gold Bullion's ore at their Westwood site; o Certain CAPEX and OPEX deposit payments prepaid by Gold Bullion due when both Certificates of Authorization have been granted. -- The Gold Bullion Operations team first goal is to ship a trial-milling batch of 30,000 tonnes for milling in October 2014 prior to winter freeze up. Subsequent milling will continue in April 2015.
The gold produced will be sold at Royal Canadian Mint spot pricing in
place at the time of delivery. The estimated time frames from shipping
ore to cash in the Gold Bullion account could be shortened if Gold
Bullion determines the best option is to sell the unrefined gold doré
bars. Based on current information, the estimated time period for
funds being deposited in Gold Bullion’s account after the ore leaves
the Granada property is one month.
Gold Bullion also announces the Certificate of Authorization request was
formally submitted to the appropriate Quebec authorities on June 20,
2014. It is anticipated the Certificate will be awarded by mid to late
Frank J. Basa, President and Chief Executive Officer, ”As we advance
towards gold production the Company begins the transition into an
explorer producer. This is a huge positive for the Company since
anticipated cash flow from the “rolling start” will give us greater
control over our ability to expand the resource and efficiently
increase gold production as opportunities to do so present themselves.”
Claude Duplessis, P. Eng., consultant for SGS, is responsible for
validating the information described herein and has reviewed and
approved the contents of this news release as a Qualified Person
independent of Gold Bullion within the meaning of NI 43-101
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, Québec, 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
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.