MONTREAL,QUEBEC--(Marketwire - July 13, 2010) - Uragold Bay Resources Inc.(Uragold) (TSX VENTURE:UBR) is pleased to announce that it hassigned a letter of intent with a private vendor regarding theacquisition of 100% interest in four claims located inSaint-Simon-les-Mines, Quebec. The acquired claims expand the BeaucePlacer Gold property to the northeast. This will add 1,700 meters to the550 meters of un-mined paleoplacer gold channel.
Uragold will modify the recentlyannounced work program of sampling and trial mining the Beauce PlacerGold tailings project to include a drilling campaign to upgradehistorical gold deposits to 43-101 standards. The Company will providean updated work program for the property in the near future.
Material terms of the agreement areas follows (all amounts are expressed in Canadian dollars). In order toacquire its interest in the claims, the Company shall make thefollowing payments to the vendor.
The Vendor agrees to grant Uragold the exclusive andirrevocable right to earn a one-hundred per cent (100%) interest in theClaims, in consideration of 1,866,000 common treasury shares of theCompany plus a cash payment of $8,000.00
The transaction is made with a party that is non-related tothe Corporation. The letter of intention is conditional to the approvalof the Board of Directors of Uragold and the transaction is subject toapproval by regulatory authorities. Further to the acquisition and itsapproval, the parties will proceed with the signature of a formalagreement and the titles of the claims will be transferred to theCorporation.
On other corporate subject:
Uragold Bay Resources is pleased to announce that its Boardof Directors has approved the issuance of 1,408,165 common shares at thedeemed price of
.05 per share to settle outstanding debts of$70,408.24 due for services rendered to service providers of theCorporation. This settlement is subject to the approval of the TSXVenture Exchange.
Furthermore, as previously announced on March 24, 2010, theCorporation has settled the debt of $87,703.88 by issuing to the serviceprovider 1,750,000 common shares.
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration company tradingon the TSX Venture Exchange under the symbol UBR. Uragold's businessmodel focuses on developing low-cost gold mining operations whileexploring on core properties that hold the potential of discovering bluesky gold deposits.
Uragold is a top claims holder in Southern Quebec'sAppalachian belt. The properties benefit from extensive historicalexploration work and from well-established infrastructure therebyhelping to reduce exploration risks.