VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/02/12)- - BCGold Corp. (BCG.V - News)(BCGOF.PK - News) (or the "Company") is pleased to announce that it has entered into a concentrate purchase agreement (the "Purchase Agreement") with Auramet Trading, LLC ("Auramet"), a New Jersey-based precious metals merchant, to facilitate the sale of approximately 0.8 dry metric tonnes (dmt) of gold-rich gravity concentrate produced during bulk sampling at the Engineer Mine in 2011. Auramet has arranged a secondary agreement between BCGold Corp. and Sipi Metals Corp. ("SiPi"), a precious metal refinery situated in Chicago, Illinois, with respect to refining terms and treatment charges for the recovery of gold and silver from the concentrate.
"This is an important milestone for BCGold Corp.," states Brian P. Fowler, President and CEO of the Company. "We have demonstrated that we can produce a marketable gold-rich concentrate while continuing to explore and advance the Engineer Mine property. The proceeds from this sale will be used to supplement our 2012 Engineer Mine exploration budget. Our efforts to forward sell substantially larger lots of gold concentrate to a suitable buyer are ongoing; the proceeds of such sales would be used to provide for mining and milling capital requirements and to finance continued exploration drilling to increase the mineral resource at Engineer Mine."
Terms of Sale
The Purchase Agreement provides for the Company to sell 100% of the total gold and silver content in its concentrate to Auramet using a flexible and comprehensive pricing and payment facility. This includes spot, pre/forward, and option pricing mechanisms, and spot, forward, and in-process basis payment mechanisms. The Company will select the appropriate mechanisms once initial confirmation sampling is completed by SiPi.
BCGold Corp.'s gold-rich concentrate is currently in transit to the Sipi refinery in Chicago and the Company expects payment prior to the start of the 2012 exploration and development program at the Engineer Mine.