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TORONTO, ONTARIO--(Marketwire
- March 1, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT)
("Rio Novo" or the "Company") is pleased to
announce that it has signed a purchase agreement with Anagold Madencilik A.S.
("Anagold", or the
"Vendor") to acquire a ball mill and several other processing
equipment items for installation at its 100%-owned Almas
Gold Project in Tocantins, Brazil.
The purchased equipment, which is now surplus the Vendor's own
requirements, previously formed part of a gold processing plant, designed
for the Vendor by SNC Lavalin Inc. The ball
mill has a design throughput capacity of 2 million tonnes
of ore per year, and was designed and manufactured by Metso Corporation. All of the equipment is new,
unused, packed and crated, and is available for immediate delivery.
Total consideration for the acquisition is US$3.8 million and includes
technical information and a supplier/vendor documentation package.
Closing of the acquisition is expected to take place on or about April
14, 2011.
The acquisition marks a major step for Rio Novo as the company
continues to develop its Brazilian gold properties with the goal of
being an active producer in 2012, while continuing to explore its two
gold districts. The Plant represents the capital equipment item with
the largest associated expenditure and longest lead time, and its
procurement will both achieve significant cost savings and maintain the
Almas Project's accelerated timeline.
CEO, David Beatty, states "We are delighted that our Rio Novo team
was able to source this important, long lead time, equipment package.
It comes at substantial Capex savings and
keeps the Almas Gold Project on its
accelerated timeline to initial production and cash flow in Q2
2012."
About Rio Novo
Rio Novo is currently focused on the acquisition, exploration and
development of gold mineral resource properties in Brazil. The
Company's goal is to become a producer of gold in the short term by
bringing into production its two Brazilian properties, the Almas Gold Project, located in the State of
Tocantins State, and the Guaranta Gold
Project, located in the State of Mato Grosso. Both projects enjoy established
infrastructure in mining friendly jurisdictions. In addition to
exploring and developing the Almas and the Guaranta Gold Projects, the Company intends to
identify, explore and develop or acquire additional precious metals
properties in Brazil and other established mineral jurisdictions in
South America.
This press release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements
regarding the estimation of mineral resources, exploration results,
potential mineralization, potential mineral resources and mineral
reserves) are forward-looking statements. Forward-looking statements
are often identifiable by the use of words such as
"anticipate", "believe", "plan",
may", "could", "would", "might" or
"will", "estimates", "expect",
"intend", "budget", "scheduled",
"forecasts" and similar expressions or variations (including
negative variations) of such words and phrases. Forward-looking
statements are subject to a number of risks and uncertainties, many of
differ materially from those discussed in the forward-looking
statements. Factors that could cause actual results or events to differ
materially from current expectations include, among other things,
without limitation, failure to establish estimated mineral resources,
the possibility that future exploration results will not be consistent
with the Company's expectations, the price of gold and other risks
identified in the Company's most recent annual information form filed
with the Canadian securities regulatory authorities on SEDAR.com. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement.
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