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Thursday, July 22, 2010
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TSX Venture Exchange: EMR
Other OTC: EGMCF
Frankfurt Stock Exchange: EML
U.S. 20-F Registration: 000-51411
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Emgold Extends Lease And Option To Purchase Agreement
For The Idaho-Maryland Property
Emgold Mining Corporation (the "Company" or
"Emgold") is pleased to announce that it has completed a new two
year extension agreement (the "Extension") to the Lease and
Option to Purchase Agreement (the "BET Agreement") with the BET
Group. The BET Agreement covers the lease and purchase of approximately
2,750 acres of mineral rights and 93 acres of surface rights associated
with Emgold's core gold asset, the Idaho-Maryland Project in Grass Valley,
CA. The lease period of the BET Agreement will be extended from February 1,
2011 for an additional two years to February 1, 2013. Lease payments during
the extension period will be US$30,000 per quarter.
The current lease extension of the BET Agreement, from February 1, 2009 to
February 1, 2011, required quarterly payments of US$30,000 per quarter in
2009 and US$60,000 per quarter in 2010. Emgold is also pleased to announce
that the BET Group has agreed to defer 50 percent of the quarterly lease
payment for 2010, amounting to US$30,000 per quarter. The amount of the
deferral, totaling US$120,000, will be added to the purchase price of the
Property, the first installment of which becomes due on February 1, 2013.
The US$120,000 will be subject to an interest calculation at 5.25%
compounded annually. Emgold will have 90 days to bring any outstanding
quarterly lease payments on the Property current.
David Watkinson, President and CEO of Emgold stated, "We would like to
thank the BET Group for their continued support of the Company and the
Idaho-Maryland Project. The extension of the lease period was critical to
allow the Company sufficient time to complete the Environmental Impact
Report and obtain the Conditional Mine Use Permit for the Project prior to
having to commit to purchasing the Property. The deferral of the quarterly
payments for 2010 reduces the Company's existing accrued liabilities and
future quarterly payments for 2010. The reduction in future quarterly
payments for 2011 and 2012 will significantly lower our operating costs
through the remainder of the permitting process. This will allow Emgold to
focus our resources on moving forward and completing the permitting process
for the Idaho-Maryland Project".
The Idaho-Maryland Mine was historically the second largest gold mine in
California, producing 2.4 million ounces of gold at an average recovered
grade of 0.43 ounce per ton. It is adjacent to the historic Empire Mine,
Newmont Mining Corporation's first operating gold mine and historically
California's largest gold mine, producing 5.8 million ounces of gold.
Newmont retains the mineral rights to the Empire Mine. The Grass Valley
Mining District produced over 17 million ounces of gold from 1850 to 1956.
The Idaho-Maryland Mine and Empire Mine shut down in 1956 due to the fixed
price of gold at US$35 per ounce and rising labor and supply costs after
WWII. The Idaho-Maryland Project contains a NI 43-101 compliant measured
and indicated resource of 472,000 ounces of gold and an inferred resource
of 1,002,000 ounces of gold.
For more information about Emgold, the Idaho-Maryland Gold Project and the
Buckskin Rawhide, Stewart, and Rozan Properties, please visit
www.emgold.com.
On behalf of the Board of
Directors
David G. Watkinson
President & CEO
For further information please contact:
Tel: (530) 271-0679
Email: info@emgold.com
This release
was prepared by the Company's management. Neither TSX Venture Exchange nor
its Regulation Services Provider (as the term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. For more information on the Company, Investors
should review the Company's filings that are available at www.sedar.com or the
Company's website at www.emgold.com
This news release includes certain
statements that may be deemed "forward-looking statements". All
statements in this release, other than statements of historical facts, that
address future production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploitation and exploration successes, and continued availability
of capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking
statements. For more information on the Company, Investors should review
the Company's filings that are available at www.sedar.com or the Company's website at www.emgold.com.
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