Bravo Gold Corp V.BVG

NEW NEIGHBOR

[ozGoldbull]

I hope you kids packed your space suits, cuz Bravo is going to the moon. Anglo-Ashanti just picked 60,000 Hectares in the Homestake camp. I don't need Lundin to tell me to BUY this one, I will tell you first!

OGB

Dolly Varden options Big Bulk claims

2009-09-10 16:52 ET - News Release

Mr. Frederick Christensen reports

DOLLY VARDEN GRANTS OPTION ON "BIG BULK" CLAIMS

Dolly Varden Resources Inc. has entered into two agreements with respect to its Big Bulk mineral claims which cover 2,639 hectares and are located approximately 30 kilometres north of Alice Arm, B.C.

In the first agreement, dated July 24, 2009, Dolly Varden has agreed with a syndicate that owns the adjoining 156 claims (which cover approximately 59,400 hectares or approximately 600 square miles) to jointly option the combined claims in favour of AngloGold Ashanti Holdings PLC. The B.C. syndicate and Dolly Varden have agreed in the joint venture agreement that:

• The $400,000 to be received from AngloGold following the signing of the AngloGold agreement (defined below) will be divided with 50 per cent ($200,000) being received by Dolly Varden and 50 per cent by the B.C. syndicate.
• All additional cash payments received under the AngloGold agreement (excluding royalties) will be received 60 per cent by Dolly Varden and 40 per cent by the B.C. syndicate.
• Royalties received pursuant to the AngloGold agreement will be divided so that:
  • If the royalties are received with respect to minerals mined from the Dolly Varden claims, 100 per cent of such royalties will be received by Dolly Varden.
  • If the royalties are received with respect to minerals mined from the B.C. syndicate claims, 25 per cent will be received by Dolly Varden and 75 per cent will be received by the B.C. syndicate.
• As the AngloGold agreement provides that the owner syndicate will be the initial manager of the work to be done on the claims by AngloGold, the owner syndicate has established a separate company, Target Geological Inc., to carry out those management duties. The president and chief executive officer of Target will be Clinton Smyth (who is the owner of one of the companies comprising the B.C. syndicate.

In the second agreement, dated July 24, 2009, the owner syndicate has granted to AngloGold an option to acquire and earn 100-per-cent ownership of the properties. To maintain and exercise the option AngloGold must:

1. Pay $400,000 to the owner syndicate within 30 days of the satisfaction of certain conditions precedent contained in the agreement;
2. Spend not less than $1.2-million on expenditures on the properties within 12 months after the commencement date which must include not less than 2,100 metres of diamond drilling on the Dolly Varden claims;
3. Complete not less than a further $2-million of expenditures on the properties within two years after the commencement date;
4. Complete not less than a further $2-million of expenditures on the properties within three years after the commencement date;
5. Pay the owner syndicate $500,000 within three years after the commencement date;
6. Pay the owner syndicate $1-million within four years after the commencement date;
7. Pay the owner syndicate $8.5-million within five years after the commencement date.

The conditions precedent, the satisfaction of which will trigger the occurrence of the commencement date, are:

1. Completion of a due diligence investigation by AngloGold in relation to the properties to AngloGold's satisfaction in its absolute discretion;
2. Approval of the agreement by the Reserve Bank of South Africa;
3. Acceptance of the agreement for filing by the TSX Venture Exchange relative to Dolly Varden.

A 2.0-per-cent net smelter return royalty is reserved to the owner syndicate in the AngloGold agreement.

Efforts have been initiated to complete satisfaction of the conditions. If the conditions precedent have not been satisfied by Oct. 31, 2009, any party to the agreement may terminate the agreement.