TORONTO, ONTARIO--(Marketwired - Sept. 11, 2013) - Brigadier Gold Limited ("Brigadier") (News - Market indicators), is pleased to announce that it has entered into a Letter of Agreement with Santa Fe Metals Corp. (Santa Fe")that sets out the terms and conditions with which Brigadier will acquire a 100% undivided right, title and interest in the Cuatro Ciénegas mineral property in Mexico.
Brigadier will pay an aggregate of $882,000 over a 42 month period, of which $625,000 will be paid by the issue of treasury shares having that value on the market as they are issued over that period. Brigadier has the option to accelerate these payments in order to acquire the property in a shorter span of time. The agreement is subject to TSX Venture Exchange approval.
The property consists of 6 concessions totalling 3,408 hectares, located about two hours northeast of the city of Torreón, in the State of Coahuila, on Highway 30 and about 40 km south of the town of Cuatro Ciénegas. Historical artisanal miner exploration and exploitation in the Cuatro Ciénegas project area is evidenced by numerous prospects and abandoned mines. The numerous abandoned mines and prospects on the Don Indio claims, that form part of the property, appear to have been the work of artisanal miners.
Stratabound Minerals Corp investigated this area in 1998 to 1999. and gained access to several of the abandoned mines and collected panel and channel samples, many of which returned high-grade copper-silver or lead-zinc values. For example: the weighted average of 95 samples from level 4 in the Pilar Grande mine was reported as 3.3 % copper, and 117 g/t silver; the weighted average of 20 samples from level 1 in the San Marcos West mine was reported as 3.0 % lead, 5.0 % zinc, and 53 g/t silver. The above values are considered historic in nature as they predate NI 43-101reporting requirements.
Sample results from work done by Santa Fe. in 2011 include up to: 239 g/t silver and 16.9 % lead from "San Marcos West" adit; 17.7 % lead and 15.5% zinc 2.8 km along strike at "La Encalmada" mine; and 228 g/t silver and 8.2 % copper a further 1.5 km along strike at "La Abandonada" mine. Fresh rock chip samples containing 0.71 % copper and 27.8 g/t silver over 1 metre indicate that mineralization continues even further north along strike outside of the 5 km zone.
These results were obtained by qualified personnel during the preparation of a NI 43-101 report and can be considered accurate. This report on the Cuatro Ciénegas property was written by Michael G. Bersch and dated July 24, 2008. It was filed on Sedar by Santa Fe on August 6, 2008.
Thomas H. Carpenter, BSc, PGeo, of Discovery Consultants of Vernon, BC, and a qualified person as defined by NI 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Carpenter is not independent of Brigadier by virtue of being a holder of incentive stock options.
Brigadier also wishes to announce that it has entered into a loan agreement with a Mexican mining company for proceeds of $230,000 CND funds, which amount will fund the initial payment called for under the Santa Fe Agreement. The loan has a term of 24 months and carries an interest rate of 8 % per annum. The company will also issue 920,000 common shares of Brigadier to the Mexican company as a bonus for providing the loan. Brigadier is evaluating additional financing alternatives to fund its working capital requirements, as well as repayment of this loan, and explorations funds. Brigadier has the right to put the Santa Fe property to the lender and extinguish the debt if it cannot finance its repayment in 2 years.
Finally the company wishes to announce that Denis Hayes has resigned as President and CEO of the company effective Sept 6, 2013. Mr. Hayes will remain an independent director. The board of directors wished to announce that Mr. Grant Hall has been elected President and CEO of Brigadier effective Sept 6, 2013.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
